Old RDL board ‘failed to manage platform exposures’
THE PREVIOUS board of RDL Realisation failed to prudently manage and monitor platform exposures, the investment trust claims.
The fund, previously named Ranger Direct Lending, has claimed in its delayed annual report that established practices within the lending industry were not followed by the previous board.
“This was the case in at least two lending platforms which are among the largest positions in the fund,” RDL said.
“In both cases, in our opinion, many established practices in the lending industry were not followed, such as diligent monitoring, appropriate cash controls, detailed, frequent and timely reporting and the retention of back-up services.
“Certain legal agreements required by the loan documentation and agreed to by borrowers, for example cash control agreements, were also not implemented and enforced, and this may have been to the detriment of the company’s shareholders.
“The new board is endeavouring to rectify many of these deficiencies and preserve capital.”
The new board took over in June 2018 when Christopher Waldron, Matthew Mulford and Scott Canon resigned and were replaced by Dominik Dolenec, Greg Share and Brendan Hawthorne.
Brett Miller and Joe Kenary were appointed on 6 July 2018 and 4 December 2018 respectively, followed by Nick Paris. Of the “old” board only Jonathan Schneider remained for a period of continuity until he stepped down in November 2018.
The investment trust is in the process of being closed down and has appointed International Fund Management to take over in February 2019.
The accounts were due at the end of April but were delayed due to disputes over valuations, which meant trading in RDL’s shares were also delayed.
Its results showed the fund’s net asset value return was down 6.41 per cent over 2018.