(Alliance News) - RDL Realisation PLC on Thursday said the Covid-19 pandemic may hurt the value of the remainder of its portfolio.
The investment trust is pursuing a managed wind-down with the goal of realising all of its investments after its former general partner the Princeton Alternative Income fund filed for bankruptcy in 2018.
In February 2019, RDL said it expected to recover USD15 million of its investment in the Princeton fund. However in January, it reduced its estimated recovery to USD14 million and in February, further amended the amount to USD13.5 million. At the time, it said that upon the fund exiting from chapter 11 bankruptcy, the cash within it will be distributed to investors.
On Thursday, RDL warned that while it hoped to realise and return a "substantial part" of the portfolio during the first half of this year, the risk that its assets may not be be realised at their fair market value, or at any value, has increased.
It added that as at March 31, the portfolio was valued at USD23.5 million and cash held was USD12.6 million. Net asset value per share dropped 60% to USD3.0 at the end of 2019 from USD7.49 as at the end of 2018.
"The company is holding ongoing discussions with platform managers regarding portfolio impacts and ensuring that the results of these discussions are reflected in future portfolio valuations as appropriate," RDL said.
The stock was trading 3.2% lower at 54.22 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.