Bank of New Zealand is pursuing a $80 million bankruptcy bid against George Kerr, the majority owner of the ambitious Homestead Bay project located in Queenstown.
The bankruptcy application stems from loans totalling $60 million that BNZ extended to two entities associated with Kerr, namely Pyne Holdings and another company, both of which he guaranteed.
These loans date back 15 years, and a High Court ruling in 2022 confirmed that BNZ was owed $62 million. A subsequent ruling in February 2023 increased this liability to $64.7 million.
Kerr is closely linked to Pyne Gould Corporation (PGC), where he serves as managing director and holds a two-thirds ownership stake. PGC was previously listed on the New Zealand Exchange but is now based in Guernsey.
RCL Real Estate, a subsidiary of PGC, is responsible for the development of Homestead Bay.
Homestead Bay is a large-scale development initiative aiming to build between 2,500 and 3,000 homes in Queenstown’s southern corridor. This project is among the 149 developments prioritised for fast-tracking under New Zealand’s government legislation.
In 2021, BNZ placed Pyne Holdings into receivership, and as of June this year, reports from receivers Calibre Partners indicated that BNZ’s claim had escalated to $80 million.
Kerr has contested the summary judgement against him with an appeal filed in October 2023.
BNZ has also supported legal actions initiated by receivers, Calibre Partners, against Pyne Holdings. Calibre Partners contended that Pyne Holdings is not involved in direct business operations but primarily holds shares in PGC (Pyne Gould Corporation). They further claimed that the company possesses interests that extend beyond the 28.6 million PGC shares currently registered under its name.
Calibre Partners confirmed that they are still awaiting a decision in that case. In the meantime, the receivers have obtained court orders in England and Wales to protect the company’s interests regarding its claim to the PGC shares.