Ranger reports positive development in Princeton fight
Ranger reports positive development in Princeton fight – the bankruptcy court has already ruled that portions of Ranger Direct Lending‘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:
- Princeton breached the investment documents by failing to provide the required opt out rights on investments.
- Princeton breached the investment documents by suspending Ranger’s redemption and withdrawal rights in circumstances where it was not permitted to do so.
- Princeton breached the investment documents by failing to provide the information required under the terms of the investment documents.
- Princeton breached its fiduciary duties.
However, the arbitration panel found insufficient evidence to find Princeton liable on Ranger’s claim of fraud and violations of 10b-5 (the SEC rule that deals with fraud).
The arbitration panel awarded gross damages of US$61.8 million and net damages totalling US$30.7 million, plus pre-judgment interest accruing from 30 November 2016. There is quite a bit of toing and froing to go through before Ranger sees any cash, however.
In other news
The board says “further announcements on the actions proposed to be taken in respect of the portfolio will be made in due course“. The company also 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.
RDL : Ranger reports positive development in Princeton fight