AN INDEPENDENT trustee is set to be appointed to assume management and control of beleaguered Ranger Direct Lending’s (RDL) Princeton holding.
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 entering bankruptcy proceedings.
A US court this week granted RDL’s motion to appoint an independent trustee to oversee the bankruptcy of Princeton.
A stock market update from RDL revealed that the United States Bankruptcy Court for the District of New Jersey Court has found “the existence of irreconcilable conflicts of interest between the Princeton fund and its insider management and the existence of an outstanding claim filed in the cases by the Securities and Exchange Commission,” which required the appointment of an independent trustee.
RDL will be allowed to suggest candidates but The Office of the United States Trustee will have the final say on who is appointed.
Once appointed, the trustee will displace current management and assume control over Princeton and its assets, RDL said.
In the meantime, RDL has applied for a court order to prohibit further investments by Princeton and to preserve all business records and electronically stored information.
Princeton last month proposed appointing an independent restructuring officer, former US bankruptcy judge Donald H. Steckroth, to oversee its restructuring and protect investors, but this was rejected by RDL.
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.