The long-running legal dispute between the Ranger Direct Lending investment trust and its Princeton portfolio holding looks set to reach a conclusion.
Ranger Direct, now named RDL Realisation (RDL) as it is winding-down, has been in 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.
A stock market update from the alternative finance-focused fund revealed today (16 March) that a bankruptcy plan for Princeton has been agreed in the US, which will provide for the distribution of cash to RDL of $13.4m (£10.9m).
RDL said in 2018 that its best option was to wind-down following a series of controversies over the fund’s declining value, a recent management review, and shareholder dissatisfaction.
According to the court-appointed Chapter 11 Trustee which is managing Princeton’s bankruptcy case, RDL 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 development means RDL will be able to continue with the run-off of its portfolio by making a new distribution to its shareholders.