11th Feb 2019 17:40
LONDON (Alliance News) - Ranger Direct Lending Fund PLC on Monday said it expects to recover around USD15 million from the Princeton bankruptcy and has impaired its investment by USD13.5 million.
Princeton Alternative Income Fund LP and its former general partner Princeton Alternative Funding LLC both filed bankruptcy petitions in March 2018. Then, in August, an arbitration panel count that Princeton had breached its investment agreement with Ranger Direct, as well as its fiduciary duties.
Net gross damages of USD30.7 million were awarded to Ranger Direct in its case against Princeton, but it could not seek confirmation without relief from the Bankruptcy Court.
In November, the Bankruptcy Court for the District of New Jersey granted Ranger Direct's motion that a chapter 11 trustee be appointed to the Princeton cases.
Ranger Direct said that, since then, it has been engaged actively with the chapter 11 trustee and its other advisors regarding Princeton.
At present, based on the trustee's information, Ranger Direct is expecting a potential USD15 million recovery from the bankruptcy of Princeton.
As at November 30, Ranger Direct had attributed a value of USD28.5 million to its Princeton investment. Ranger Direct has therefore impaired the carrying value of its Princeton investment by USD13.5 million.
No further updates from the trustee are expected in the short term but Ranger Direct said it will provide a further update based on any additional information that might relate to the potential recovery of its Princeton investment.
"The company emphasises that this remains an unverified estimate and is subject to a number of potential variables, in particular that the amount that the company will recover will be dependent upon the final structure of the creditor and investor waterfall and distribution scheme and the actual net amount available for distribution," said Ranger Direct.
"A final determination of these issues is not expected for a number of months and it is not possible to predict the precise structure of the distribution scheme which will be approved by the bankruptcy court," Ranger Direct added.
At present, the investment fund is in the process of winding down.
Ranger Direct shares closed flat at 524.00 pence on Monday.
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