27th Apr 2018 13:33
LONDON (Alliance News) - Ranger Direct Funding Ltd and Oaktree Capital Management L.P continued their tit-for-tat Friday over Ranger's future direction.
Oaktree, in a letter sent Friday, said Ranger is at a "critical juncture" and it is "imperative" it gives all shareholders a voice in the "major decisions" it is facing.
The American asset management company, which has a 18.56% interest in Ranger, has demanded that Ranger "publicly commit" to a full shareholder vote on any future investment management arrangements "regardless of whether it is required".
Oaktree said it would raise "significant governance questions" if Ranger were to "adopt a new long-term investment management arrangement without allowing all shareholders a voice on the matter in an open and transparent way".
Ranger responded Friday saying it "sees no need to change" its management arrangements and investment policy after it announced in late January "any new investment management arrangements for the company would be conditional on shareholder approval".
This is the second letter Oaktree has sent Ranger - the first asking Ranger to wind-down. Oaktree said Ranger was "too small" and it operates in a "niche asset class". He was also "highly troubled" by Ranger's exposure to Princeton and its ongoing legal process "with no end in sight".
Ranger responded to the release of the "private correspondence" by informing the market that the letter - dated April 11 - was not the last contact between the pair before the letter was published.
"They relayed the "conclusion" that a winding down was the best way forward for the company. Since the receipt of Oaktree's letter, the company and its advisors have communicated to Oaktree that all of the relevant issues raised by Oaktree are already being dealt with as part of the review process. The only conclusion which can be drawn from this sequence of events is that Oaktree had no serious interest in engaging in the review process and their course of action was solely driven by their short-term considerations," said Ranger on Tuesday.
Shares in Ranger were down 1.5% to 793.60 pence each Friday.
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