Ranger Direct Lending releases information on Princeton bankruptcy – As previously announced by Rangers Direct Lending (RDL) , and reported by us in previous news posts (click here to view more) one of the company’s holdings, Princeton is filing for Chapter 11 bankruptcy in the US. Ranger is currently in process of forming a reorganisation plan for submission to the bankruptcy court with regard to Princeton Alternative Income Fund (“Princeton”) and its manager Princeton Alternative Funding.
This is concurrent with Ranger’s own plans to wind up (click here to read more on the wind up plans)
As part of such a reorganisation plan, the company is entitled to receive information relating to Princeton Alternative Funding’s assets under management (including the assets held by Princeton). Ranger has received certain, albeit limited, information regarding the assets of Princeton pursuant to this process.
Princeton may have underestimated its valuation, with implications for Ranger’s NAV
Although Ranger does not yet have sufficient information to form an opinion on the value of such underlying assets, it does believe that based on the information available:
- there is a possibility that the values asserted by Princeton may be incorrectly estimated and overstated, and
- the implementation of a protective impairment in the value of its investment is warranted.
The company will continue to work on determining the amount of the protective impairment to its net asset value as it further evaluates the information at its disposal and any additional information received pursuant to the Chapter 11 proceedings. A further announcement will be issued by Ranger Direct lending as soon as the final amount of the impairment is set.
RDL : Ranger Direct Lending releases information on Princeton bankruptcy