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RDL Rdl Realisation Plc

59.70

0.00 (0.00%)

03 May 2024 - Closed

Delayed by 15 minutes

Rdl Realisation Investors - RDL

Share Name	Share Symbol	Market	Stock Type
Rdl Realisation Plc	RDL	London	Ordinary Share

	Price Change	Price Change %	Share Price	Last Trade
	0.00	0.00%	59.70	01:00:00

Open Price	Low Price	High Price	Close Price	Previous Close
			59.70	59.70

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Top Posts
Posted at 25/7/2020 13:08 by rndm355 again behind a paywall but the RDL situation is analysed here, the writer is optimistic: Read Full Thread Reply
Posted at 05/12/2019 10:51 by dindledo !FOLLOWFEED Hi Everyone I'm new to this forum and I've been watching this share for a while & wonder if it will ever produce any real profits for it's poor investors? Any views on this. Read Full Thread Reply
Posted at 01/10/2019 14:53 by davebowler Liberum; Majority of performing assets expected to be redeemed by mid-2020 Mkt Cap £38m \| Prem/(disc) -20.3% \| Div yield n/a Event NAV per share at 30 June 2019 was $6.80 per share, representing a NAV total return of -6.4% in the half-year in US Dollar terms. Steady realisations in the period and an agreement with the ZDP shareholders enabled the $70.7m repayment of the ZDP shares. The company has consequently been able to resume dividend payments from realisations. $50m was returned to shareholders in August following the $27.9m paydown of a loan following a refinancing with a new lender. Ranger's capital distributions over the past 12 months have been driven by a number of portfolio disposals and the refinancing of loans where Ranger was the sole platform capital provider. The majority of the remaining assets in the portfolio comprise loans that the board believes are best run-off and this could occur by mid-2020. A number of residual positions (e.g. Princeton) are expected to take longer due to bankruptcy proceedings. The remaining portfolio was valued at $62m excluding the vehicle services contract platform. This mainly comprises loan investments across three platforms: SME/CRE loan platform (44% of NAV) - Regular run-off of performing investments. The balance has reduced from $40.5m to $26.4m over the six months. Real Estate platform (27% of NAV) - The balance outstanding continues to reduce through loan sales and run-off. The exposure to this platform has reduced from $36.8m to $16.2m since December 2018. Princeton (25% of NAV) - the Chapter 11 Trustee filed an adversary complaint against MicroBilt Corporation, alleging several actions of wrongdoing by MicroBilt and other defendants. A settlement conference was held in August with a group of investors, MicroBilt and the Chapter 11 Trustee but it did not result in a settlement of any claims. The Bankruptcy Court set a schedule to decide a motion that the Trustee plans to file to set the relative value of the partners' capital accounts and the estate's investments. An evidentiary hearing is set for 10 October. The Chapter 11 trustee's plan is based on the net equity method (capital invested less distributions). MicroBilt's proposal is based on the use of NAV as calculated by the management of Princeton in February 2018. Liberum view Total dividends paid since the wind-down strategy was approved at the end of June 2018 are 536p (55% of NAV at June 2018). The repayment of the loan to the vehicle services contract platform ahead of book value was a significant positive given LTV concerns on the portfolio. The main concern in the remaining assets is the possibility of Princeton's bankruptcy proceedings dragging on into 2020 and the potential for ongoing legal costs. Assuming the liquidation plan for Princeton is approved, the Princeton position will be reduced by $2.5m and the plan put forward by the Chapter 11 trustee suggests that $15m is a reasonable estimate of potential liquidation proceeds. Read Full Thread Reply
Posted at 21/6/2019 10:31 by davebowler Liberum; Positive month for distributions in April Mkt Cap £64m \| Prem/(disc) -36.5% \| Div yield n/a Event RDL Realisation's portfolio update for April highlights a $13m increase in the cash position in the month to $89m. The main reason for the increase was $10m of repayments from real estate loans. This included a $6m loan that was in default which was repaid at a slight premium to book value. The majority of the company's cash balance (£55.7m) will be used to redeem the ZDP shares following the agreement on the redemption price. The remaining portfolio was $104.8m at 30 April. A defaulted real estate loan with a book value of $2.8m is under contract to sell for $2.5m. The expected writedown after costs is $0.5m. In relation to the remaining Princeton position, Microbilt has put together an informal group of minority investors to support an alternative liquidation plan to the one proposed by the Chapter 11 Trustee. Microbilt's plan would leave the fund in bankruptcy for an indefinite period of time. RDL Realisation will support the plan put forward by the Trustee. Under the plan, RDL Realisation will be paid $2.5m in priority to other investors in the fund as a result of the arbitration findings. Aside from that, it would be treated in the same way as other investors. Liberum view April was a relatively positive month given the level of distributions which has been achieved broadly in line with book values. Over $30m of loans have redeemed in the four months to April and the company finally reached an agreement with ZDP holders. The board is aiming to have the majority of the run-off portfolio repaid by late-2019. Other residual positions involving bankruptcy proceedings (Princeton) are expected to take longer. Read Full Thread Reply
Posted at 12/2/2019 10:07 by davebowler Liberum; Event Based on information provided by the chapter 11 Trustee in the bankruptcy proceeding of Princeton Alternative Income Fund, Ranger has decided to write down the carrying value of its investment in Princeton by $13.5m to $15m. Ranger has been actively engaged with the Trustee since its appointment in early November. The potential recovery value of $15m is based on a number of variables, including the final structure of the creditor and investor waterfall and distribution scheme. This will not be finalised for a number of months. Other factors that may impact the final amount include recoveries from the performing and payday loans in the portfolio as the current estimates are based on assumptions using historic sector benchmarks. As previously announced, the investment management agreement with with the current investment manager terminates with effect from today. Joe Kenary has recently been appointed to the executive board in addition to Dominik Dolenec and Brett Miller. A third party valuer will be used to value the portfolio on a half-yearly basis. The board believes half-yearly valuations are more appropriate than monthly valuations given the ongoing realisation process. Net asset value will be reported for 30 June and 31 December in future. Liberum view Ranger had flagged the writedown in Princeton as far back as October. The company has stressed the uncertainty regarding the latest recovery estimate for Princeton and we believe there is potential for a further impairment in this investment. The remaining value of $15m is equivalent to 11% of pro-forma NAV. 73% of the original $56m investment in Princeton has now been written off. Following the writedown, we estimate the cover ratio on the ZDP shares is 2.65x. This is below the minimum cover covenant of 2.75x which is tested on an incurrence basis (e.g. at the time of dividend distribution etc). As a result, the company cannot make any further distributions to ordinary shareholders (outside of what is required to maintain investment trust status) without being in breach of the ZDP covenants. Read Full Thread Reply
Posted at 18/12/2018 10:12 by davebowler Liberum Concerns over exposure to SME lending platform Mkt Cap £106m \| Prem/(disc) -27.5% \| Div yield n/a Event Ranger Direct Lending's NAV return in October was -0.26%. This was mainly due to a loss reserve of -0.67% in the month (-0.54% related to the Canadian SME platform). Princeton legal expenses also reduced NAV by -0.1%. Ranger has provided an update on the remaining assets in the portfolio: SME/CRE lending platform (29% of NAV) - Discussions have begun to enable the platform to sell Ranger's loans to other investors. SME lending platform (26% of NAV) - The funding notes are secured by vehicle service contracts. Ranger has stopped making new investments in the platform. The company has breached its LTV requirement due to the reduced volume of new loans and losses in related entities. Mandatory prepayments have also not been made. The platform has found a new funding source and has offered a revised repayment schedule and security package. Ranger is also in discussions with a potential acquirer of its funding notes. The outstanding balance of $47.8m includes a $4.5m loan to the platform to finance an acquisition. Real estate platform (23% of NAV) - Ranger's exposure to this platform has reduced by $11m in the month mainly due to the sale of loans to other investors. A further loan sold for $1.8m in November in addition to $0.9m of repayments. International SME platform (21% of NAV) - Ranger's credit facility is expected to be refinanced in the near-term. The company is in the final stages of negotiating a facility with a new lender. Canadian SME lending platform (7% of NAV) - Loss reserves increased by c.$1.3m in the month. 10% of the remaining portfolio is made up of non-performing loans and 30% is being restructured. Princeton (15% of NAV) - The US trustee has appointed Matthew Cantor as chapter 11 Trustee. He previously served as Chief Counsel for Lehman Brothers Holdings. He displaced the Princeton management on appointment and has assumed control over Princeton and its assets. The Trustee is assessing the assets and formulating a plan of liquidation. Liberum view The key development in the month is that the SME lender that finances vehicle service contracts is showing signs of stress. The overall exposure to the platform is equivalent to 26% of NAV. $4.5m (2.4% of NAV) relates to a loan to the TopCo and is secured on share pledges over the operating entities of the platform, which appear to be experiencing difficulties. Ranger is exposed to counterparty risk due to the nature of these funding notes. Any early cancellations of these contracts by consumers means that the lender has to recover the remaining proceeds from the operating entity or insurer. On a positive note, a significant portion of the real estate debt exposure has reduced in the month. The international SME lender (21% of NAV) is also close to agreeing a loan refinancing. The shares currently trade on a -27.5% discount to NAV but that is before any further writedown is taken on Princeton. The company previously flagged that a significant writedown is forthcoming. Assuming a full writedown of Princeton, the pro-forma discount would be -14.2%. We expect the writedown will be implemented relatively soon given the appointment of the chapter 11 trustee. Read Full Thread Reply
Posted at 13/11/2018 10:58 by davebowler Liberum; Progressing asset sales Mkt Cap £117m \| Prem/(disc) -17.0% \| Div yield n/a Event Ranger Direct Lending's NAV return in September was 0.15%. The portfolio produced a gross return of 0.63% before accounting for a loss reserve of 0.48%. Princeton legal expenses reduced returns by -10bps and a consumer loan portfolio was marked down to reflect the price achieved for the sale of the portfolio in October (-33bps impact on NAV). The major recent newsflow from the company was the sale of a consumer portfolio in October for $18.2m (3.5% discount to par). The portfolio comprised performing loans and the company separately sold off a portfolio of charged off loans for $0.2m. The portfolio sale enabled Ranger to pay a special dividend of 85p per share in November. Ranger has also provided an update on the remaining assets in the portfolio: SME/CRE lending platform (30% of NAV) - Bids for the assets were below the reserve price. Ranger will continue to hold the loans and allow them to run off. Potential for future sale of loans. Real estate platform (29% of NAV) - Performing loans will be offered for sale at par to the platform's existing and potential investors. SME lending platform (26% of NAV) - The funding notes are secured by vehicle service contracts and several potential buyers are performing due diligence. Ranger is the platform's sole capital provider. International SME platform (21% of NAV) - Ranger's credit facility is expected to be refinanced at par within 4-8 weeks. Canadian SME lending platform (8% of NAV) - Ranger has taken over servicing of the portfolio and is restructuring payment obligations of a material proportion of the borrowers. The company currently expects that collection action will be necessary against 9.6% of the underlying borrowers. Princeton (15% of NAV) - As previously disclosed, a chapter 11 Trustee will be appointed in the bankruptcy cases of Princeton. The appointed trustee will replace the current management of Princeton and assume control over the assets. The investment in Princeton is currently held at $28.5m in Ranger's accounts and an impairment is forthcoming. A general meeting will be held on 16 November to approve proposals to formally amend the investment objective and investment policy of the company to reflect a realisation strategy. Liberum view The September monthly report provides a useful update on the company's progress in realising assets and returning capital to shareholders. There is potential for a number of large distributions from the portfolio in the near-term (refinancing of international SME platform credit facility and sale of SME platform funding notes). The outstanding issue of the ZDP repayment still needs to be resolved. To date, Ranger has acquired 12.5% of the ZDPs. Our estimate of the pro-forma NAV is shown below following the consumer portfolio sale, ZDP buyback and special dividend. Our pro-forma estimate does not include any adjustment to Princeton, which we expect to be written down heavily. The existing carrying value represents 15.5% of our pro-forma NAV. One of the more recent filings in the bankruptcy case is a monthly operating report for July that was filed by Princeton. It includes bank statements showing cash of $7.9m at 31 July 2018. The statements also appear to show that Princeton has continued to fund credit lines in the months prior to 31 July but there is no detail on any credit lines in the report. Est NAV 891.9p Read Full Thread Reply
Posted at 23/8/2018 09:54 by davebowler Liberum; Ranger Direct Lending (Mkt Cap £125m) Negative month following increased loss reserves Event Ranger Direct Lending's NAV at 30 June 2018 was $12.88 per share, representing a total return of -0.14% in the month. Gross income returns prior to any loss reserves was 0.70%. This was offset by a monthly loss reserve of -0.41%, Princeton net losses of -0.37% and Princeton legal expenses of -0.07%. The monthly loss reserve of -0.41% was relatively high as a result of $0.4m (0.19% of NAV) of writedowns related to real estate loans and a $0.1m writedown related to an international loan from the international SME lending platform. In total, $14.8m of real estate loans are in default/impairment status ($22.4m at December 2017). $8.2m relates to two properties which are in contract status. The $0.4m impairment in June relates to these loans due to lower projected recovery prices. Foreclosure proceedings have completed for two properties with carrying values of $5.1m. The assets are expected to be sold in Q4 2019 and a $0.3m writedown (0.14% of NAV) will be taken against one of these assets in July. One remaining asset with a $1.5m carrying value is in foreclosure and is expected to be sold in late 2019. Princeton reported a net loss in June which reduced NAV by -0.37%. It has not provided any information as to what caused the loss. The company is uncertain whether it was a cash item from legal expenses or an additional impairment. The company recently provided an update on Princeton. On phase one of the arbitration, gross damages of $61.8m were awarded to Ranger Direct Lending and the US domestic fund which is managed by the investment manager. This represents the total amount invested by both funds. This has been adjusted to net damages of $30.7m, plus pre-judgement interest accruing from 30 November 2016. The adjustment reflects the amount previously received as a return of principal and the amount the panel attributed to the Argon sidepocket ($22m). The Bankruptcy Court had previously limited its grant of relief from the automatic bankruptcy stay to the entry of a final award by the arbitration panel. Ranger cannot seek confirmation or enforcement of the award without further relief from the bankruptcy court. Liberum view NAV total return in US Dollars in H1 2018 was 0.7% (3.0% in Sterling due to FX gains). Performance has been impacted by Princeton legal expenses and increased loss reserves in non-Princeton assets over the period. Given the ongoing issues in the portfolio, we believe it is unlikely there will be meaningful income returns in the wind-down period for the portfolio. The recent award of damages in the Princeton arbitration is a positive development but it remains unclear what remaining assets Princeton has and how much can ultimately be recovered by the manager. The key question following the strategy change and the appointment of the new board will be how quickly can funds be returned to investors. Oaktree stated in its open letters that it expected the majority of the portfolio could be realised within 18 months given the short duration. In the last quarterly portfolio update, 88% of the portfolio's payment status was classified as current (14 month average remaining term). The average remaining term of the various loan investments ranges from 4 months to 36 months. The shares currently trade on a -22.7% discount to NAV (-10.1% discount assuming full writedown of Princeton position). Read Full Thread Reply
Posted at 11/6/2018 10:23 by davebowler Liberum; Board intends to propose orderly realisation process Event The proposed new investment manager, Ares Management, has notified the board that it no longer wants to take up the appointment of investment manager of the fund. This follows calls from activist shareholders for a winding-up of the company. The board has therefore concluded that the company should move to realise its assets in an orderly manner. The independent directors believe it is inappropriate for Oaktree and LIM nominees to be elected to the board at the AGM on 19 June, given a significant number of inaccurate statements by their sponsors. Provided that the current directors make up a majority of the board following the AGM, additional non-executive directors will be appointed to the board to assist with the winding-up process. The board will commence discussions with both ordinary and ZDP shareholders about a portfolio realisation process and a timetable for winding-up the company. The investment manager has been instructed to assess how best to realise the portfolio in a manner that maximises value for shareholders. The board has also denied Oaktree's statement that the board sidelined Oaktree's ability to participate in the review process. In addition, Oaktree publicly questioned whether the board had any prior dealings with Ares in a public letter last week. The board has confirmed today that it and its advisers have no such conflict. Liberum view Given the large holdings of both Oaktree and LIM, the immediate future of the fund would have been extremely challenging if Ares had been appointed as manager. It is likely that this would have led to a large overhang of stock and made for an extremely difficult transition process. We believe the company had little capacity to acquire stock back from dissenting investors given it is already sub-scale. The shares currently trade on a -19.2% discount to NAV (-6.4% discount assuming full writedown of Princeton position). Read Full Thread Reply
Posted at 04/5/2018 10:02 by davebowler Liberum; Ranger Direct Lending (Mkt Cap £126m) Oaktree publishes open letter to shareholders Event Oaktree has urged shareholders to ask the Board to consider the benefits of a wind-down proposal as an alternative to the Ares proposal announced earlier this week. Oaktree is the second largest shareholder in Ranger (18.6% stake) and had previously written to the Board calling for a wind-down of the company. In the open letter, Oaktree has raised several concerns. They believe the Ares proposal is the result of a biased and flawed process. They do not believe the Board seriously considered a wind-down proposal. In addition, Oaktree states insufficient detail has been published by the company in relation to the proposal to appoint Ares. The proposal from the Board earlier this week is light on specific details on the new investment strategy, plans for discount elimination and fees for the new manager. Oaktree also believe the Ares proposal carries increased risk in comparison to a wind-down. Oaktree has criticised the track record of the Board to date and has also questioned the Board's statement that 39% of shareholders support its recommendation. Oaktree states it has been contacted by significant shareholders who oppose the Ares proposal. Liberum view Oaktree's letter makes a number of credible points regarding Ranger and the potential benefits of a wind-down proposal. We would expect a response from the Board today. Additional detail is expected to be provided by the Board in the upcoming circular. The letter still does not address the complicating factor of the ZDP shares in a wind-down scenario. The ZDP shares mature in 2021 and the ZDP shareholders could demand the final redemption value if the company was winding-down. We estimate the additional liability would be c.$14m over and above what has been accrued to date. The letter also mentions the possibility of cashing-out dissenting investors. We believe it is highly unlikely the company would acquire stock back from dissenting investors given it is already sub-scale. It has happened in the investment companies universe in recent years, but this has tended to be for larger funds with greater capacity to acquire shares. In addition, this would require approval from ZDP shareholders which is highly unlikely. The asset cover levels are already close to the covenant level of 2.75x (we estimate cover is 3.15x including Princeton and 2.83x excluding Princeton). Ranger currently trades on a -19.4% discount to NAV (-6.6% discount assuming full writedown of Princeton investment). Read Full Thread Reply

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