RANGER Direct Lending (RDL) has rejected an attempt by its Princeton holding to appoint an independent restructuring officer as the dispute between the two fund houses continues.
Alternative finance-focused investment trust RDL has been locked in legal wrangles with its Princeton holding since last year initially over its exposure to bankrupt lender Argon.
The conflict was further complicated by the Princeton Alternative Income fund (PAIF) entering bankruptcy proceedings.
In the latest twist, PAIF had proposed to appoint an independent restructuring officer, former US bankruptcy judge Donald H. Steckroth, to oversee its restructuring and protect investors, but this has now been rejected by RDL.
“We are disappointed Ranger rejected the proposal to appoint Judge Steckroth, whose experience and reputation make him imminently qualified to oversee PAIF’s restructuring,” Jeff Davner, president of PAIF, said.
“Every step of the way we have been striving to protect all investors in the fund. And at each step, Ranger’s leadership has rejected reasonable measures to resolve the dispute.
“Ranger seems committed to continuing its legal campaign to exert and obtain ownership and management over assets Ranger may have incorrectly told its investors it controls.”
RDL is in the process of being wound up after announcing it would close in June amid concerns from investors over its performance and strategy.
The investment trust said last month that it was increasing its focus on recovering losses from its Princeton investment and extended its dedicated Princeton committee to include all board members.