NexPoint Petitions Maryland Court for Emergency Relief to Compel UDF IV to Provide Shareholder List
NexPoint Real Estate Opportunities has filed an emergency motion in Baltimore City Circuit Court to compel United Development Funding IV (UDF IV) to provide comprehensive shareholder information and lists. NexPoint currently has contact information for only 14% of outstanding shares across 13% of accounts. The motion requests UDF IV's Annual Meeting be held between December 16-31, 2024, allowing NexPoint adequate time to communicate with shareholders. NexPoint criticizes UDF IV's Board for lack of transparency and shareholder communications, noting only one annual meeting held in nine years. The company's delisting and deregistration have made shareholder communication challenging.
NexPoint Real Estate Opportunities ha presentato un'istanza d'emergenza al Tribunale di Baltimora per costringere United Development Funding IV (UDF IV) a fornire informazioni dettagliate e liste degli azionisti. Attualmente, NexPoint possiede informazioni di contatto solo per il 14% delle azioni in circolazione su 13% dei conti. L'istanza richiede che l'Assemblea Annuale di UDF IV si tenga tra il 16 e il 31 dicembre 2024, offrendo a NexPoint il tempo adeguato per comunicare con gli azionisti. NexPoint critica il Consiglio di UDF IV per la mancanza di trasparenza e comunicazioni con gli azionisti, osservando che è stata tenuta solo un'assemblea annuale in nove anni. La delistazione e la deregistrazione dell'azienda hanno reso difficile la comunicazione con gli azionisti.
NexPoint Real Estate Opportunities ha presentado una moción de emergencia en el Tribunal del Circuito de la Ciudad de Baltimore para obligar a United Development Funding IV (UDF IV) a proporcionar información completa y listas de accionistas. NexPoint actualmente tiene información de contacto solo para el 14% de las acciones en circulación en el 13% de las cuentas. La moción solicita que la Junta Anual de UDF IV se celebre entre el 16 y el 31 de diciembre de 2024, permitiendo a NexPoint tiempo adecuado para comunicarse con los accionistas. NexPoint critica a la Junta de UDF IV por la falta de transparencia y comunicaciones con los accionistas, observando que solo se ha celebrado una reunión anual en nueve años. La deslistación y la deregistración de la empresa han dificultado la comunicación con los accionistas.
NexPoint Real Estate Opportunities는 United Development Funding IV (UDF IV)가 포괄적인 주주 정보 및 목록을 제공하도록 강제하기 위해 볼티모어시 순회 법원에 긴급 Motion을 제기했습니다. 현재 NexPoint는 13%의 계좌 중 14%에 해당하는 주식의 연락처 정보만 보유하고 있습니다. 이 Motion은 UDF IV의 연례회의가 2024년 12월 16일부터 31일 사이에 열리도록 요청하고 있으며, NexPoint가 주주들과 충분히 소통할 수 있는 시간을 제공합니다. NexPoint는 UDF IV 이사회를 투명성 부족 및 주주 커뮤니케이션 부족으로 비판하며, 지난 9년 동안 단 한 번의 연례회의만이 열렸다고 언급했습니다. 회사의 상장 폐지와 등록 취소는 주주 소통을 어렵게 만들었습니다.
NexPoint Real Estate Opportunities a déposé une requête d'urgence auprès du tribunal de circuit de la ville de Baltimore pour contraindre United Development Funding IV (UDF IV) à fournir des informations complètes sur les actionnaires et des listes. NexPoint dispose actuellement d'informations de contact pour seulement 14% des actions en circulation sur 13% des comptes. La requête demande que l'Assemblée Générale d'UDF IV ait lieu entre le 16 et le 31 décembre 2024, permettant à NexPoint d'avoir le temps adéquat pour communiquer avec les actionnaires. NexPoint critique le conseil d'administration d'UDF IV pour son manque de transparence et de communications avec les actionnaires, notant qu'une seule assemblée annuelle a eu lieu en neuf ans. La radiation et la désinscription de l'entreprise ont rendu la communication avec les actionnaires difficile.
NexPoint Real Estate Opportunities hat beim Baltimore City Circuit Court einen Eilantrag eingereicht, um United Development Funding IV (UDF IV) zur Bereitstellung umfassender Aktionärsinformationen und -listen zu zwingen. NexPoint hat derzeit nur Kontaktinformationen für 14% der im Umlauf befindlichen Aktien in 13% der Konten. Der Antrag fordert, dass die Jahresversammlung von UDF IV zwischen dem 16. und 31. Dezember 2024 stattfindet, damit NexPoint ausreichend Zeit hat, um mit den Aktionären zu kommunizieren. NexPoint kritisiert den Vorstand von UDF IV aufgrund mangelnder Transparenz und Kommunikation mit den Aktionären und weist darauf hin, dass in den letzten neun Jahren nur eine einzige Hauptversammlung abgehalten wurde. Die Delistung und Deregistrierung des Unternehmens haben die Kommunikation mit den Aktionären erschwert.
- None.
- Company has been delisted and deregistered
- Former management team members are serving prison terms for financial fraud
- Only one annual shareholder meeting held in last nine years
- shareholder communications and lack of financial transparency
Insights
This legal motion for shareholder list access represents a significant corporate governance issue. The request for emergency relief in Maryland court highlights serious transparency concerns regarding UDF IV's management of shareholder communications. The court's decision could materially impact the upcoming trustee election and shareholder rights.
The key legal implications center on:
- Access to the NOBO list and comprehensive shareholder information
- Timing of the Annual Meeting (requested between December 16-31, 2024)
- Compliance with Maryland law regarding fair and equitable elections
This proxy battle highlights severe governance deficiencies at UDF IV. The most alarming aspects include:
- Only one shareholder meeting held in 9 years
- financial transparency
- Former management serving prison terms for financial fraud
- Continued board support of convicted felons
NexPoint Says UDF IV's Refusal to Provide Shareholder Information and Lack of Transparency Is Impeding Fair and Equitable Election as Required by Maryland Law
Requests Stay to Enable Communication with Shareholders and Remedy Information Imbalance
NexPoint believes UDF IV must provide critical shareholder information to enable shareholders to make informed decisions in a fair and equitable election of Trustees as required by
A copy of the motion can be found here.
The Company's delisting and deregistration and sparse shareholder communications has made reaching shareholders exceedingly difficult. NexPoint believes the stark imbalance of shareholder information unjustly handicaps NexPoint's solicitation and threatens to leave most UDF IV shareholders severely uninformed during what is a crucial election of Trustees. Some shareholders who NexPoint has been able to contact were not even aware that members of the former management team are currently serving prison terms for financial fraud at the Company and the Board's continued financial support of these felons.
It is important to note that while UDF IV has not announced its Annual Meeting date, shareholders can vote TODAY using NexPoint's GREEN proxy materials to enact long overdue change and elect Trustees who will work for all shareholders to maximize value at UDF IV.
NexPoint encourages shareholders to visit udfaccountability.com and complete the contact form to receive ongoing updates about the Company and the upcoming Annual Meeting.
Shareholders can also contact NexPoint via email at udfinvestors@nexpoint.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.
CONTACT INFORMATION
UDF IV Investor Contacts
Chuck Garske / Jeremy Provost / Theo Caminiti (Okapi Partners):
Email: info@okapipartners.com
Phone: (212) 297-0720
For Additional Information/Updates on UDF IV
Website: www.udfaccountability.com
Email: udfinvestors@nexpoint.com
Media Contacts
Lucy Bannon (NexPoint): lbannon@nexpoint.com
Paul Caminiti/Pamela Greene (Reevemark): nexpointteam@reevemark.com
NexPoint Investor Relations
Kristen Thomas: ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
FAQ
What emergency relief is NexPoint seeking from the Maryland Court regarding UDF IV?
What percentage of UDF IV shareholder information does NexPoint currently have access to?
How many annual shareholder meetings has UDF IV held in the past nine years?
