RDL Realisation has accepted a revised cash payment of approximately $13.5m (£10.44m) to settle a dispute with the Princeton Alternative Income Fund which has been ongoing since 2017.
According to the court-appointed Chapter 11 Trustee which is managing Princeton’s bankruptcy case, RDL has signed off on an amended plan which is 10 per cent lower than Princeton’s $15m valuation from December 2019, and 3.7 per cent lower than its revised valuation – of $14m – in January 2020.
The latest discount reflects the additional legal costs which Princeton expects to incur as a result of a delay in the bankruptcy court hearing. The court has set a hearing date of 13 March 2020 to officially sign off on Princeton’s dissolution plan. Once signed off by the courts, RDL will be able to continue with the run-off of its portfolio by making a new distribution to its shareholders.
The new Princeton settlement places the total value of RDL’s portfolio at $39.9m, down from a valuation of $48.3m in December 2019.
“The Princeton cash payment ruled by the court to RDL Realisation is lower than expected,” said a Numis analyst.
“We anticipate the company will distribute the cash to shareholders after it receives it in March.”
Numis noted that RDL distributes any loan repayments to shareholders and has distributed 573p of special dividends since October 2018, representing 59.3 per cent of the NAV per share at June 2018. The fund’s latest NAV was 535p per share at 30 June 2019, which represents a 31.3 per cent discount on yesterday’s share price of 130p per share.