12 Aug 2019 14:30
12 August 2019
RDL Realisation Plc
("RDL" or the "Company")
Portfolio Update
The Company today provides the following update on its investment portfolio as of 30 June 2019. All figures are unaudited and based on management accounts.
The table below is an unaudited summary of the Company's investment portfolio and cash position as of 30 June 2019:
| Net Balance | Net Balance |
Platform | 30/ 6/ 2019 (USD million) | 31/5/2019 (USD million)
|
SME/CRE Loans Platform | $31.5 | $34.5 |
Vehicle Services Contract Platform | $24.1 | $27.8 |
Real Estate Loans Platform | $17.7 | $15.7 |
Princeton | $15.0 | $15.0 |
International SME Lending Platform | $3.9 | $5.0 |
Equipment Loans Platform | $0.3 | $0.3 |
Invoice Factoring Platform | $0.0 | $0.2 |
Consumer Loans Platform | $0.0 | -$0.1 |
Third SME Loans Platform | $0.0 | -$0.1 |
Portfolio Total | $92.5
| $98.3 |
Cash held by RDL | $20.2 | $92.4 |
Grand Total | $112.7 | $190.7 |
Note that the above figures do not include any accruals of payables at the fund level.
(1) The increase in the Real Estate Loans Platform and a corresponding decrease in the SME/CRE Loans Platform of USD $2 million represents a re-classification of one specific real estate loan which was booked in one platform but managed in another. This particular real estate loan was settled with a significant payment from the proceeds of an underlying property sale in July.
(2) The decrease in the International SME Lending Platform without a corresponding increase in cash represents the final reconciliation and posting of unapplied cash received in a prior period.
Significant events during June
The Vehicle Service Contract Platform made substantial principal payments of USD $3.7 million.
Significant Events since 30 June 2019:
A significant cash paydown of USD $27.9 million was received in August for the sale of 100% of the Vehicle Services Contract Platform as a result of a refinancing with a new lender. A separate USD $4.5 million loan remains outstanding to the manager of the platform and is the subject of re-financing negotiations.
In July, a defaulted real estate loan was collected and settled in the amount of USD $2 million.
ZDP Repayment
As announced by the Company on 20 June 2019, resolutionsto place its subsidiary, RDLZ Realisation PLC ("ZDP Co") into a members' voluntary winding up and to amend the amounts payable in respect of the zero dividend preference shares ("ZDP Shares") issued by ZDP Co so that ZDP Shareholders would receive a Final Capital Entitlement of 121.887 pence per ZDP Share were passed at the ZDP Class Meeting and the General Meeting of ZDP Co held on 20 June 2019. The cost to the Company of repaying the ZDP Shares on 21 June 2019 amounted to approximately USD $70.7 million. Note that this figure does not include associated transaction expenses totalling USD $860k.
Princeton update
On 29 July 2019, the Trustee for Princeton filed an adversary complaint in the Bankruptcy Court against MicroBilt Corporation ("MicroBilt") and various related entities and individuals. The Complaint alleges fifteen separate causes of action on behalf of the bankruptcy estate for alleged wrongdoing by MicroBilt and other defendants. On 5 and 8 August, representatives of both Ranger entities participated in a court ordered settlement conference with a group of ad hoc investors, MicroBilt and the Chapter 11 Trustee. The settlement conference did not result in a settlement of any claims in the bankruptcy proceeding. At the conclusion of the settlement conference, 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. There will be an evidentiary hearing on the motion on 7 October 2019. The MicroBilt chapter 11 plan is based upon the use of Net Asset Values ("NAV") as determined by Princeton's management as of February 2018, which was the last statement prior to the bankruptcy. The motion to be filed by the Trustee will not utilise Princeton's NAV values, since they are deemed unreliable. Under the Trustee's chapter 11 plan all investors' ownership percentages will be determined through a "net equity method" which will determine investors' ownership percentage based upon the amount invested minus the amounts paid to the investor for distribution or income.
Chairman appointment
Brendan Hawthorne was elected as Chairman of the Board of Directors as of 12 July 2019.
Dividend payment
As previously announced by the Company on 22 May 2019, the Directors approved the payment of a dividend on the Ordinary Shares of USD 21.71 cents (17.14 GBP pence) per Ordinary Share at a total cost of USD $3.5 million. The dividend was paid on 12 July 2019 and charged to revenue reserves.
Dividend declaration
A further dividend was declared by the Directors on 8 August 2019 of USD 309.32 cents (255 GBP pence) at a total cost of USD $49,871,450. The dividend will be paid on 30 August 2019 and 13% will be charged to revenue reserves and 87% to capital reserves.
Other
Both the Consumer Loans Platform and the Third SME Loans Platform have negative net balances due to pay offs and the buildup of reserves that now exceed the gross value of these platforms. We will stop accruing any additional reserves for those platforms going forward.
For further information, please contact:
Link Company Matters +44 (0)1392 477571
Limited Secretary
LEI: 549300VGZSKYQ7C2U221