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Peer2Peer Finance News | September 20, 2017

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Ranger Direct Lending seeks arbitration over bankrupt lender

Ranger Direct Lending seeks arbitration over bankrupt lender
Marc Shoffman

THE RANGER Direct Lending investment trust has issued arbitration proceedings against one of its holdings Princeton in an effort to get more information on its exposure to a bankrupt lender.

Ranger Direct, which invests in secured business loans mainly in the US, has an investment in Princeton which gave it exposure to direct lending platform Argon Credit, which went bankrupt in December.

In April 2017, Ranger Direct said it had taken an impairment of $8.87m (£6.9m) on its original exposure to Princeton due to a decline in cashflow from the Argon portfolio. This represented four per cent of assets.

But since then the fund has been unhappy with the information provided from Princeton and how it calculated a write down of $11.7m on the Argon portfolio.

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A stock market announcement from Ranger Direct this morning said arbitration proceedings had been initiated with dispute resolution provider JAMS.

“The purpose of the proceedings is to seek to enforce Ranger’s rights against the Princeton Master Fund and the general partner,” it said.

“Among other claims, Ranger seeks to enforce rights concerning redemption and the provision of financial information.”

Arbitration costs will be split between the funds, and will eventually be covered by the losing party in the arbitration.

The issue has seen Ranger Direct’s discount to NAV fall to 26.1 per cent.

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