by Niko Kloeten
Perpetual chief executive Patrick Middleton said the moratorium, which will last from July 5 to August 31, is a result of a recent "surge" of applications for redemptions from the fund.
"Following recent adverse publicity, Perpetual received applications for the redemption of 6.1 million units ($6.1 million)," he said.
"As a result of court orders sought by the Fund's statutory supervisor, Trustees Executors Limited, and not opposed by its trustee, Perpetual, the Fund's ability to make payments was restrained.
"Accordingly, Perpetual determined, in accordance with the Fund's Trust Deed, that it is likely that payments for requested redemptions are unable to be made.
"Accordingly, having regard to the best interests of the unit holders in the Fund as a group, Perpetual has determined to declare a moratorium on payments in respect of that Fund."
The move comes after a recent Court of Appeal ruling, which rejected Perpetual's appeal against High Court Justice Paul Heath lifting a confidentiality order on the case, allowing the FMA's concerns about related-party lending to be made public.
The court judgments described how loans totalling $28 million from Perpetual's Cash Fund had been made to the Torchlight Fund following an emailed request in February by Torchlight chairman George Kerr, the majority owner of Pyne Gould.
Middleton said that while the moratorium is in place, the Fund will not be able to accept new investments, nor pay withdrawals or distributions to unit holders.
However, he said this does not necessarily mean that the Fund will close, or that the value of units will be affected.
"The Fund will continue to accrue and collect interest together with the repayment of principal from borrowers as this falls due."
Niko Kloeten can be contacted at niko@goodreturns.co.nz
| « Adviser lawsuit drought not all good news | Fund managers call for level playing field » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved