05 June 2020

Perpetual Trust: Pyne Gould Corp v. Bath Street Capital

George Kerr and Andrew Barnes continue shadow boxing over the disputed consequences of Pyne Gould’s 2013 sale of Perpetual Trust to Bath Street Capital.   Each complains the other has not provided court-ordered documents. Kerr’s Pyne Gould Corporation claims to be owed $22 million; Barnes’ Bath Street Capital claims yet-to-be calculated damages alleging Kerr’s Pyne Gould stymied chances of a public listing. 
In happier times, Pyne Gould (then under George Kerr’s control) sold its shareholding in Perpetual Trust to Bath Street in 2013 for $11.9 million. Pyne Gould was promised extra if Bath Street sold on at a profit within a defined ‘carry period.’  Andrew Barnes’ plans twelve months later to fold subsequent acquisition Guardian Trust in with Perpetual Trust triggered an extra payout for Pyne Gould.  The High Court was told a variation was agreed: payment would be delayed; Pyne Gould to get $22 million when Guardian/Perpetual was floated on the stock exchange as Complectus.  Complectus never listed.  Mr Kerr says $22 million is still owed; Bath Street represented that listing would go ahead. Mr Barnes says payment was conditional on listing and there was no promise of a listing.  He alleges public accusations by Pyne Gould that Bath Street had defaulted on a $22 million debt made it impossible for Bath Street to raise capital for a listing.
In the High Court, each accused the other of not disclosing all relevant documents in readiness for trial.  Justice Katz requested they put their heads together and sort out what was required.  They had seven days to reach agreement.  Failing that, Justice Katz said she would set the rules.
Pyne Gould Corporation Ltd v. Bath Street Capital Ltd – High Court (5.06.20)
20.099