Ranger Direct Board asks Kinmont to review management arrangements

Ranger Direct Board asks Kinmont to review management arrangements – Ranger Direct Lending put in place a management contract at the time of its IPO with Ranger Alternative Management II, LP. The initial term finishes on 1 May 2018 and then there is a rolling one year notice period thereafter.  On 1 November 2017, the Board announced that it, in conjunction with the manager, was in discussions with potential co-managers who could assist in and strengthen aspects of the manager’s current role and responsibilities.

The Board, following discussion with shareholders and with the manager, has initiated the formal process to determine the management arrangements for the company beyond May 2018. The Board has appointed Kinmont, a corporate finance business, to provide independent advice on this process.

A further announcement will be made in respect of this process in due course and parties interested in a future investment mandate in respect of the company’s external management arrangements are invited to contact Kinmont to register their interest.  The Board’s management engagement committee will direct this process on behalf of the company.

Princeton Arbitration Update

Arbitration proceedings initially took place over 20 November 2017 to 30 November 2017 but were continued to a four-day period from 18 January 2018 in order to accommodate proposed testimony.  The testimony is now substantially complete and the remaining witness testimony is estimated by the company to require an additional two day hearing period.  These additional days have been scheduled and are expected to conclude by 9 March 2018.   Following conclusion of the testimony, the parties will submit post hearing briefings and then the arbitration panel will have up to 30 days to make a determination in respect of its ruling.

The company also sued MicroBilt (the majority owner in Princeton’s manager) and related parties in the Delaware Court of Chancery.   The Princeton parties moved to force the company to pursue the claims against MicroBilt and its related parties within the existing arbitration; and that motion was granted by the arbitration panel.  As a result, the company dismissed its claims in Delaware without prejudice and without waiving its rights to later seek review of the arbitration panel’s decision compelling arbitration.   The company intends to refile its claims in arbitration.   The company does not expect that the filing of such claims in arbitration will impede or delay the arbitration panel’s decision with respect to the claims currently being pursued against Princeton or its General Partner.  The MicroBilt proceedings continue to be conducted by the company’s attorneys on a contingency basis as previously announced.

RDL : Ranger Direct Board asks Kinmont to review management arrangements