WINDING-DOWN investment trust RDL Realisation reduced the value of its portfolio by $6.5m (£5.2m) in May, according to its latest portfolio update.
The alternative finance-focused fund reported on Monday that its portfolio was valued at $98.3m as of 31 May 2019, down from $104.8m on 30 April 2019.
Meanwhile, its cash balance increased to $92.4m from $88.3m over the period.
RDL Realisation, previously named Ranger Direct Lending, is in the process of being wound down after suffering poor performance and an ongoing dispute with its Princeton holding, which has subsequently gone bankrupt.
Read more: Ranger Direct Lending: What really happened
The company said on Monday (8 July) that it had received one large loan pay-off in May of $4.5m from its real estate loan platform. The figure is included in the cash total. However, the month also saw a $2.4m decrease in the cash balance due to currency headwinds and the settlement of $1m of accounts payables.
In February, RDL said it expects to recover just $15m of its $28.5m investment in the Princeton Alternative Income fund, following the bankruptcy of Princeton Alternative Funding (PAF). At the time the company said the amount could change and it would “not be surprised to see further impairments”.
RDL said that it believes an alternative winddown plan for PAF presented by Microbilt is “vague” and will instead support the plan filed by the chapter 11 trustee.
“Microbilt Corporation recruited an informal group of minority investors to support its alternative chapter 11 plan, which is vague in structure and content,” RDL said. “Among other things, the Microbilt plan leaves the fund in bankruptcy for an indeterminate period of time.
“The company believes that the Microbilt plan is not in the best interest of the company or other investors. The company will support the plan filed by the chapter 11 trustee and seek its confirmation before the bankruptcy court.”
RDL also said that its directors had approved the payment of a dividend of $0.2171 per ordinary share at a total cost of $3.5m. The dividend will be paid on 12 July.