Argon bankruptcy still causing headaches for Ranger Direct

20th Jan 2017 09:46

(ShareCast News) - Ranger Direct updated the market on Friday, on the status of its platform agreement with the now-bankrupt online lender Argon.The London-listed firm had announced on 22 December that Argon Credit and Argon X had filed for Chapter 11 bankruptcy protection, and that it had entered into a platform agreement with an SME credit line platform which provided credit lines to Argon.At the time, it said its indirect participation in the credit lines amounted to around $28.3m."The company has been informed by the SME Credit Line Platform that its group has taken control of the collateral under the purview of the bankruptcy court, and initiated primary servicing," Ranger Direct said on Friday."The collateral which is currently under their control includes underlying loans and associated receivables pledged to the SME credit line platform pursuant to the credit facility between [the] SME credit line platform and Argon."It said further proceedings were continuing in respect of the SME credit line platform's claim that Argon has, in breach of the terms of its agreements with the platform, assigned a portion of the underlying collateral to an unapproved special purpose vehicle. "The company will make a further announcement following the completion of the evaluation by the SME credit line platform and its appointed servicer of the collateral received to date."