Regulates translation as part of a complex with MCTS1. Specifically required for translational re-initiation in mRNAs containing upstream open reading frames (uORFs). Not required for standard translational initiation. Regulates expression of a subset of gene products including mbc, InR and EcR. Interacts with MCTS1. Animals die as pharate adults with crooked legs, abnormal genitalia and a larval-like epidermis. Proliferation of histoblast cells is impaired. Belongs to the DENR family.