RANGER Direct Lending (RDL) has warned that it anticipates a further hit to its coffers from its Princeton investment.
The London-listed alternative finance fund, which is in the process of being wound down, said that Princeton may have “incorrectly estimated and overstated” the value of its underlying assets.
RDL has been embroiled in a lengthy legal dispute over Princeton’s level of exposure to bankrupt lender Argon since last year.
But proceedings have been held up by Princeton also filing for bankruptcy. RDL is currently in the process of forming a reorganisation plan for Princeton, for submission to the bankruptcy court.
RDL said it “will continue to work on determining the amount of the protective impairment to its net asset value as it further evaluates the information at its disposal.”
A further announcement will be made as soon as the final amount of the impairment is set, the firm said.
“Princeton was valued at $28.5m (£21.7m) at 31 July, representing 13.9 per cent of net assets,” Numis analysts said.
“It is not surprising to see a further impairment is likely to Princeton given the ongoing bankruptcy process and lack of information that has been available since the issues with Princeton emerged.”
RDL announced it would be closing down in June, following concerns about poor performance. Chairman Christopher Waldron has departed and a new board, tasked with winding down the fund, was appointed at the annual shareholder meeting in July.