RDL Realisation (RDL) has revised down the valuation of its Princeton holding in the latest development surrounding the beleaguered alternative finance-focused investment trust.
RDL is in the process of winding down but has been in legal dispute with its Princeton holding since 2017 over its level of exposure to bankrupt lender Argon.
The proceedings were due to close in March 2018 but Princeton unexpectedly filed for bankruptcy hours before the arbitration was supposed to end.
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RDL is waiting for Princeton’s exit from chapter 11 bankruptcy to be approved by the US courts but said in a stock market update this morning (13 June) that a new disclosure statement showed the estimated recovery value of its holding would be $14m rather than $15m.
“The board believes that if the trustee’s plan is confirmed after the next hearing, this would enable the Princeton Alternative Income Fund to exit from chapter 11 bankruptcy and that the cash within it can then be distributed to the underlying investors,” RDL said.
The next hearing is due in March.
The investment trust’s total assets are currently worth £63.5m.
RDL investors are being repaid through a series of dividends.