UDF IV Shareholders Should Not Be Misled by the Company's Latest Attempts to Distract from the Current Board's Failures
NexPoint cautions United Development Funding IV (UDF IV) shareholders against being misled by the company's recent attempts to distract from the current Board's failures. UDF IV issued a letter to shareholders raising concerns about NexPoint's leadership, which NexPoint claims contains false statements and rehashes previous attacks. NexPoint argues that UDF IV is trying to divert attention from the Board's mismanagement, which has resulted in significant value and liquidity loss.
NexPoint highlights that UDF IV's current Board of Trustees oversaw years of fraud by former executives, who were convicted and are serving prison sentences. The Board also authorized using shareholder funds to defend these executives legally. NexPoint, with $14.5 billion in real estate assets under management, is nominating four independent Trustee candidates to replace the current Board, aiming to enforce loan agreements, pursue defaulting borrowers, manage expenses, and maximize asset value for shareholders.
NexPoint mette in guardia gli azionisti di United Development Funding IV (UDF IV) contro i recenti tentativi dell'azienda di distogliere l'attenzione dai fallimenti dell'attuale Consiglio. UDF IV ha inviato una lettera agli azionisti sollevando preoccupazioni sulla leadership di NexPoint, la quale, secondo NexPoint, contiene dichiarazioni false e ripropone attacchi precedenti. NexPoint sostiene che UDF IV stia cercando di distogliere l'attenzione dalla cattiva gestione del Consiglio, che ha portato a una significativa perdita di valore e liquidità.
NexPoint sottolinea che l'attuale Consiglio di Amministrazione di UDF IV ha supervisionato anni di frodi da parte di ex dirigenti, che sono stati condannati e stanno scontando pene detentive. Il Consiglio ha anche autorizzato l'uso dei fondi degli azionisti per difendere legalmente questi dirigenti. NexPoint, con 14,5 miliardi di dollari in beni immobiliari sotto gestione, sta nominando quattro candidati Trustee indipendenti per sostituire l'attuale Consiglio, con l'obiettivo di far rispettare gli accordi di prestito, perseguire i mutuatari inadempienti, gestire le spese e massimizzare il valore degli asset per gli azionisti.
NexPoint advierte a los accionistas de United Development Funding IV (UDF IV) sobre los recientes intentos de la empresa para distraer la atención de los fracasos de la actual Junta. UDF IV envió una carta a los accionistas expresando preocupaciones sobre el liderazgo de NexPoint, que NexPoint afirma contiene declaraciones falsas y reitera ataques anteriores. NexPoint argumenta que UDF IV está tratando de desviar la atención de la mala gestión de la Junta, que ha resultado en una significativa pérdida de valor y liquidez.
NexPoint destaca que la actual Junta de Fideicomisarios de UDF IV supervisó años de fraude por parte de exejecutivos, quienes fueron condenados y están cumpliendo penas de prisión. La Junta también autorizó el uso de fondos de los accionistas para defender legalmente a estos ejecutivos. NexPoint, con $14.5 mil millones en activos inmobiliarios bajo gestión, está nominando a cuatro candidatos independientes al Fideicomisario para reemplazar a la actual Junta, con el objetivo de hacer cumplir los acuerdos de préstamo, perseguir a los prestatarios incumplidores, gestionar gastos y maximizar el valor de los activos para los accionistas.
NexPoint는 United Development Funding IV (UDF IV) 주주들에게 회사의 최근 실패를 은폐하려는 시도에 주의할 것을 권고합니다. UDF IV는 NexPoint의 리더십에 대한 우려를 표명하는 주주 편지를 발송했으며, NexPoint는 이 편지에 허위 진술이 포함되어 있고 이전 공격을 재탕하고 있다고 주장합니다. NexPoint는 UDF IV가 이사회의 잘못된 관리로부터 주의를 돌리려 하고 있다고 주장하며, 이는 상당한 가치 및 유동성 손실로 이어졌습니다.
NexPoint는 UDF IV의 현재 이사회가 전직 임원들의 수년간의 사기를 감독했던 사실을 강조하며, 이들은 유죄 판결을 받고 형을 살고 있습니다. 이사회는 또한 이러한 경영진을 법적으로 방어하는 데 주주 자금을 사용하도록 승인했습니다. NexPoint는 145억 달러 규모의 부동산 자산을 관리하고 있으며, 현재 이사회를 대체할 네 명의 독립된 신탁 후보자를 지명하고 있습니다. 이들은 대출 계약을 집행하고, 채무불이행 차입자를 추적하며, 비용을 관리하고, 주주를 위한 자산 가치를 극대화하려고 합니다.
NexPoint met en garde les actionnaires de United Development Funding IV (UDF IV) contre les récentes tentatives de l'entreprise de détourner l'attention des échecs actuels du Conseil. UDF IV a envoyé une lettre aux actionnaires soulevant des préoccupations concernant le leadership de NexPoint, que NexPoint affirme contenir des déclarations fausses et reproduire des attaques antérieures. NexPoint soutient qu'UDF IV essaie de détourner l'attention de la mauvaise gestion du Conseil, ce qui a entraîné une perte de valeur et de liquidité significative.
NexPoint souligne que l'actuel Conseil d'Administration d'UDF IV a supervisé des années de fraude de la part d'anciens dirigeants, qui ont été condamnés et purgent des peines de prison. Le Conseil a également autorisé l'utilisation des fonds des actionnaires pour défendre légalement ces dirigeants. NexPoint, avec 14,5 milliards de dollars d'actifs immobiliers sous gestion, nomme quatre candidats indépendants au poste de Trustee pour remplacer l'actuel Conseil, visant à faire respecter les accords de prêt, à poursuivre les emprunteurs défaillants, à gérer les dépenses et à maximiser la valeur des actifs pour les actionnaires.
NexPoint warnt die Aktionäre von United Development Funding IV (UDF IV), sich nicht von den jüngsten Versuchen des Unternehmens ablenken zu lassen, die aktuellen Misserfolge des Vorstands zu verschleiern. UDF IV hat einen Brief an die Aktionäre verschickt, in dem Bedenken hinsichtlich der Führung von NexPoint geäußert werden, die NexPoint zufolge falsche Aussagen enthält und frühere Angriffe wiederholt. NexPoint argumentiert, dass UDF IV versucht, von der Fehlleitung des Vorstands abzulenken, die zu erheblichen Verlusten von Wert und Liquidität geführt hat.
NexPoint hebt hervor, dass der derzeitige Vorstand von UDF IV Jahre des Betrugs durch frühere Führungskräfte überwacht hat, die verurteilt wurden und Freiheitsstrafen verbüßen. Der Vorstand genehmigte auch die Verwendung von Aktionärsgeldern zur rechtlichen Verteidigung dieser Führungskräfte. NexPoint, das 14,5 Milliarden Dollar an Immobilienvermögen verwaltet, nominiert vier unabhängige Treuhänder, um den aktuellen Vorstand zu ersetzen, mit dem Ziel, Darlehensvereinbarungen durchzusetzen, bei säumigen Kreditnehmern vorzugehen, Kosten zu verwalten und den Vermögenswert für die Aktionäre zu maximieren.
- NexPoint has $14.5 billion in real estate assets under management across various asset classes
- NexPoint is one of the largest shareholders, aligning its interests with other shareholders
- NexPoint is nominating four independent Trustee candidates with relevant experience to replace the current Board
- UDF IV's current Board of Trustees presided over years of fraud committed by former executives
- The Board authorized using tens of millions of shareholder funds to pay for legal defense of convicted former executives
- UDF IV has failed to develop or execute a plan to turn around operations, enhance shareholder value, and create liquidity
- UDF IV's cash distributions are 100% return of capital, further eroding value
NexPoint Cautions Shareholders Not to Let UDF IV's Attacks Divert from Real Issues
The Company has failed to develop, communicate, or execute a plan to turn around operations, enhance shareholder value, and create liquidity. Despite having had at least six years since the Company's 2018 settlement with the SEC, during which this Board of Trustees and the management team have had exclusive control, the Company has yet to articulate any viable proposal to recover value for shareholders, beyond touting a "long history of cash distributions" that are
Shareholders should not be fooled by the Company's misleading claims about NexPoint and should equip themselves with the facts about the current Board and NexPoint's intentions:
Facts about UDF IV's current Board of Trustees:
- Members of the current Board of Trustees presided over years of fraud committed by former UDF IV executives against shareholders.
- Those former executives were convicted on numerous counts of fraud and are serving combined prison sentences of 20+ years, and their convictions were upheld by the
U.S. Fifth Circuit Court of Appeals and theU.S. Supreme Court. - The current Board of Trustees authorized the use of tens of millions of dollars of shareholder funds to pay for the legal defense of the former executives and have made no attempt to recoup those funds on behalf of shareholders—even after the conclusive
U.S. Supreme Court decision.
Facts about NexPoint's intentions:
- NexPoint has over
$14.5 billion - As one of the largest shareholders, NexPoint is completely aligned with fellow shareholders.
- NexPoint is nominating four Trustee candidates to replace the current Board. The candidates would serve as Independent Trustees with fiduciary duties to represent the interests of ALL shareholders—not just NexPoint's.
- The nominees are independent and have relevant experience and track records of acting for the benefit of shareholders and creating corporate value.
- If elected, the nominees would cause UDF IV to aggressively enforce its loan agreements, pursue remedies against defaulting borrowers, manage its expenses, and realize the fullest value possible for its assets.
NexPoint urges shareholders to vote using the GREEN proxy card FOR its nominees: Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock. Voting information and additional shareholder resources can be found at www.udfaccountability.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE: NXDT), an affiliate of NexPoint Advisors, L.P.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit www.nexpoint.com
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") intends to deliver a proxy statement with respect to its solicitation of proxies for nominees to be elected to the United Development Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of Shareholders of UDF IV. The date for the Annual Meeting has not yet been set and NexPoint is not soliciting proxies at this time. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) WHEN AVAILABLE IN ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT ANY SOLICITATION.
Copies of the documents will be made available free of charge from NexPoint by accessing the website www.udfaccountability.com.
NexPoint, its affiliates, their directors and executive officers and other members of management and employees may be participants (collectively "Participants") in the solicitation of proxies by NexPoint. Information about NexPoint's nominees to the UDF IV Board of Trustees and information regarding the direct or indirect interests in UDF IV, by security holdings or otherwise, of NexPoint, the other Participants and NexPoint's nominees will be available in the proxy statement. NexPoint's disclosure of any security holdings will be based on information made available to NexPoint by such Participants and nominees. UDF IV is no longer subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. Consequently, NexPoint's knowledge of significant security holders of UDF IV and as to UDF IV itself is limited.
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CONTACT INFORMATION
Investor Contacts
Okapi Partners: info@okapipartners.com
NexPoint: ir@nexpoint.com
Media Contacts
Paul Caminiti/Pamela Greene (Reevemark): nexpointteam@reevemark.com
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1 Among the other public REITs advised by NexPoint and its affiliates are NexPoint Residential Trust, Inc. (NYSE:NXDT) and NexPoint Real Estate Finance, Inc. (NYSE: NREF). |
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SOURCE NexPoint Advisors, L.P.
FAQ
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