Ranger Direct Lending Fund PLC Princeton and Portfolio Update (7814W)
August 03 2018 - 5:45AM
UK Regulatory
TIDMRDL
RNS Number : 7814W
Ranger Direct Lending Fund PLC
03 August 2018
3 August 2018
RANGER DIRECT LENDING FUND PLC (or the "Company")
Princeton and Portfolio Update
Princeton
The Company notes the following developments in the ongoing
bankruptcy proceedings relating to Princeton Alternative Income
Fund, LP ("Princeton") and its former general partner Princeton
Alternative Funding, LLC.
As previously announced, the Bankruptcy Court ruled that
portions of the Company's claims against Princeton and the general
partner in pending arbitration proceedings could proceed and be
fully adjudicated. The arbitration panel has now rendered a
"Partial Final Award" on Phase I of the arbitration as follows:
1. Princeton breached the investment documents by failing to
provide the required opt out rights on investments.
2. Princeton breached the investment documents by suspending the
Company's redemption and withdrawal rights in circumstances where
it was not permitted to do so.
3. Princeton breached the investment documents by failing to
provide the information required under the terms of the investment
documents.
4. Princeton breached its fiduciary duties.
5. The arbitration panel found insufficient evidence to find
Princeton liable on the Company's claim of fraud and violations of
10b-5.
The arbitration panel awarded gross damages in the amount
invested by the Company and the US domestic fund which is managed
by the Company's investment manager, which is US$61.8 million, and
adjusted that award to net damages totalling US$30.7 million, plus
pre-judgment interest accruing from 30 November 2016. The damages
award is attributable to both the Company's investment in Princeton
as well as the investment by the US domestic fund, less the amount
previously received as a return of principal (US$9.1 million), less
the amount the Panel attributed to the Argon sidepocket in
Princeton (US$22 million). In addition, the arbitration panel found
that the Company and the US domestic fund are entitled to 99 per
cent. of any distributions from the Argon sidepocket in
Princeton.
Because the Bankruptcy Court limited its grant of relief from
the automatic bankruptcy stay to the entry of a final award by the
arbitration panel on these matters, the Company cannot presently
seek confirmation and/or enforcement of the award without further
relief from the Bankruptcy Court. The Company is unable at this
time to determine whether Princeton's assets are sufficient to pay
the entire judgment.
The Company will continue to pursue its claims in full against
Princeton through the bankruptcy proceedings and it views the
arbitration panel decision as a positive development that gives
independent confirmation of the failings of Princeton and the
General Partner to abide by their contractual and legal
obligations. The Company is evaluating whether to seek relief from
the automatic bankruptcy stay to pursue of Phase II of the
arbitration - which seeks damages against certain individuals and
entities other than Princeton. The Bankruptcy Court previously
ruled that the automatic bankruptcy stay applies to Phase II, so
that additional relief will be required to proceed.
Other portfolio updates
The Board continues to work with its investment manager with the
aim of realising the portfolio and further announcements on the
actions proposed to be taken in respect of the portfolio will be
made in due course. The Company notes that one of the named
portfolio managers, Wes McKnight, is no longer employed by the
investment manager having taken the decision to pursue other
opportunities.
For further information, please contact:
Link Company Matters Limited
Secretary +44 (0)1392 477 510
Liberum Capital Limited
Joshua Hughes +44 (0)20 3100 2000
LEI: 549300VGZSKYQ7C2U221
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END
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