Mum's courage saved kids as Kiwi husband Alan Culverwell shot by pirates in Panama

Despite suffering a machete-blow to the shoulder, Derryn Culverwell battled to lock herself and their twin children in the boat's cabin, inset. Photo / Supplied

Distraught relatives of a Kiwi man shot dead by Panama pirates have praised his wife's courage, saying her quick thinking and bravery saved the lives of her two young children.

Alan Culverwell, 60, died after being shot at close range with a shot gun after pirates boarded his family's boat, the Aqua Lobo, under the cover of darkness.

Despite suffering a machete-blow to the shoulder, Derryn Culverwell battled to lock herself and their twin children in the boat's cabin and made an emergency call to New Zealand to raise the alarm.

Alan Culverwell died in Panama while protecting his wife and young children. Photo / Facebook

"She's a very brave woman. We are so grateful that she found that strength," her sister-in-law Derryn Hughes told the Herald.

Three people have now been charged in connection with Culverwell's murder.

Even with a horrific machete-injury, she had kept fighting, Hughes said.

"She was fighting for her children's lives.

"I don't know what to say to her to thank her. This could have been so much worse."

Three people have now been arrested in connection with Culverwell's killing.

Leandro Herrera and Avelino Arosemena appeared in court today, the Guardian reported. The are charged with aggravated homicide, robbery, criminal association and mistreatment of a minor.

A third suspect, a 17-year-old minor, earlier appeared in court in connection with the case.

Derryn Culverwell was at court for the hearings and was photographed outside today.

She has been discharged from hospital and is now recovering from her injuries. One of her children also received minor injuries during the incident.

The family were on a dream trip having sold their Marlborough Sounds property and bought a 65-foot launch. They had travelled to Florida to pick it up and were on the journey of a lifetime home when terror struck.

Culverwell had awoken in the early hours after hearing a noise on the boat's roof. He was killed when he went to investigate.

The family had been so meticulous with their preparations but nothing could prepare anyone for this, Hughes said.

"They were very diligent with things like security and safety," Hughes said.

On many occasions the family undertook man-overboard drills.

After managing to lock herself and her children in the cabin, Derryn Culverwell made an emergency call to close friends, Rebecca and Steve Woledge, back home.

In a statement provided to media, Rebecca Woledge said she received the call at 6.05pm and told Steve to urgently get a rescue under way.

"We were solely focused on getting them help from then on. We would like to thank all of those who were involved in what was the longest night of our lives.

"This includes New Zealand Rescue Control Centre, the New Zealand Police, IMB, MFAT, Interpol, Panama Rescue Control Centre and our contacts in the superyacht and chartering industries, and anyone else I have failed to mention."

It was an unimaginable end to what was supposed to be the adventure of a lifetime.

"Derryn and Alan built a beautiful place down in the Marlborough Sounds in Oyster Bay, and as the children got older they ended up selling that place," Hughes said.

Then the timing had felt right to travel with their kids and the family left New Zealand shortly before Christmas in 2016 after finding a vessel in Florida.

"It was so exciting for them."

In those early days, holing up against the hurricanes seemed like the toughest part of the adventure they would face, Hughes said.

Arrangements are being made to bring Culverwell's body back to New Zealand.