Receivership for Direct Lending Investments, LLC

Receivership for Direct Lending Investments, LLC

Case Number: 19-02188

Central District of California

Since the commencement of the Receivership, the Receiver has taken possession of the assets and books and records of the business under the supervision of the United States District Court.  Among other things, the order appointing the Receiver provides that the portfolio investments (including loan facilities and other advances) are assets of the Receivership. 

The Receiver may enforce Indebtedness Agreements against the Counterparties. The commencement of the Receivership does not diminish, impair or otherwise lessen the Counterparties’ obligations to DLI under the Indebtedness Agreements.  In particular, Counterparties continue to be required to remit to DLI payment under the Indebtedness Agreements in the amount and in the manner provided for in the Agreements.  In the event the Indebtedness Agreements are not timely paid or another obligations under the Agreements are not timely performed, the Receiver has the right to commence a lawsuit in the District Court or other courts of competent jurisdiction to enforce the Indebtedness Agreements and payment of all amounts owed.

In sum, following the commencement of the Receivership, Counterparties continue to be obligated to pay DLI the full amount of the debt owed.  Failure to remit payment timely may result in the Receiver bringing a lawsuit against the Counterparty to enforce payment.