RANGER Direct Lending (RDL) has secured backing from the board of its zero-dividend preference (ZDP) share class for its new investment policy ahead of its general meeting on 16 November.
Shareholders are set to vote on the beleaguered fund’s new strategy that will see it focus on being wound up and selling off assets rather than making new investments.
A stock market update from RDL said the process will “maximise the proceeds available” to meet the investment trust’s obligations to the ZDP shareholders.
“The ZDP committee believes that the amendments to the company’s investment policy to formalise the approach do not materially prejudice holders of ZDP shares,” the update said.
RDL is currently in the process of purchasing stock from its ZDP share class as part of the winding-up process of the investment trust.
The alternative finance-focused fund – which is in the process of being closed down following shareholder pressure – has said there was no mechanism for shutting the ZDP class separately so the shares would have to be purchased by the investment company instead.
RDL announced in June that it would be closing down, amid concerns over its performance and management changes. Two of the fund’s largest shareholders, Oaktree Capital Management and LIM Advisors, had been calling for the fund to be wound down for several months.
It has been embroiled in a lengthy dispute with its Princeton holding, over its exposure to bankrupt lender Argon.
However, its investment manager announced this week that it would quit earlier than expected and analysts have expressed concerns over what value can be taken from its assets.