Peer-to-peer lender Ranger Direct Lending (RDL) has been forced to take an $11.7m impairment against the Princeton Alternative Income Fund (PAIF), an investment fund in which it has a 100 per cent equity interest. This follows news that Princeton borrower Argon Credit has filed for bankruptcy.
PAIF had provided credit to Argon to fund underlying consumer loans. Ranger Direct has a $28.3m interest in these loans. The impairment is expected to reduce Ranger's overall net asset value (NAV) by around 4 per cent per share. However, Ranger is seeking more information about the impairment given Princeton had said in December it did not expect any writedown in the distributions it would receive as a result of the bankruptcy. At the same time, Ranger had said it anticipated no impact on aggregate dividend payments.
