NexPoint Reminds UDF IV Shareholders That Actions Speak Louder Than Words and Urges Them to Vote for New Board Representatives
NexPoint Real Estate Opportunities has issued a critical mailing to shareholders of United Development Funding IV (UDF IV) ahead of the Annual Meeting of Shareholders. The mailing highlights serious concerns about the current Board's actions, including failing to hold annual meetings for eight years, avoiding financial transparency, and using shareholder funds to pay for former executives' legal issues. NexPoint criticizes the Board for allowing the loan portfolio to become 98% concentrated with a single borrower and permitting over $100 million in loan extensions. The company urges shareholders to vote for NexPoint's nominees using their GREEN proxy materials to implement necessary changes and maximize shareholder value.
NexPoint Real Estate Opportunities ha inviato una corrispondenza cruciale agli azionisti di United Development Funding IV (UDF IV) in vista dell'Assemblea Annuale degli Azionisti. La corrispondenza evidenzia serie preoccupazioni riguardo le azioni dell'attuale Consiglio di Amministrazione, compreso il mancato svolgimento di riunioni annuali per otto anni, l'assenza di trasparenza finanziaria e l'uso dei fondi degli azionisti per coprire le questioni legali di ex dirigenti. NexPoint critica il Consiglio per aver permesso che il portafoglio prestiti diventasse concentrato al 98% su un unico prestatore e per aver autorizzato oltre 100 milioni di dollari in proroghe di prestiti. L'azienda esorta gli azionisti a votare per i candidati di NexPoint utilizzando i materiali di delega VERDI per attuare i cambiamenti necessari e massimizzare il valore per gli azionisti.
NexPoint Real Estate Opportunities ha emitido un correo crítico a los accionistas de United Development Funding IV (UDF IV) antes de la Junta Anual de Accionistas. El correo destaca serias preocupaciones sobre las acciones de la actual Junta Directiva, incluyendo la falta de reuniones anuales durante ocho años, la evasión de la transparencia financiera y el uso de los fondos de los accionistas para pagar problemas legales de exejecutivos. NexPoint critica a la Junta por permitir que el portafolio de préstamos se concentre en un 98% con un solo prestatario y por permitir más de 100 millones de dólares en extensiones de préstamos. La compañía insta a los accionistas a votar por los nominados de NexPoint utilizando sus materiales de poder VERDES para implementar los cambios necesarios y maximizar el valor para los accionistas.
NexPoint Real Estate Opportunities는 United Development Funding IV (UDF IV)의 주주들에게 연례 주주 총회를 앞두고 중요한 메일을 발송했습니다. 이 메일은 현재 이사회 행동에 대한 심각한 우려를 강조하며, 8년 동안 연례 회의를 개최하지 않고 재정 투명성을 피하며, 주주 자금을 전직 경영진의 법적 문제에 사용하는 것을 포함합니다. NexPoint는 대출 포트폴리오의 98%가 단일 차입자에게 집중되도록 허용하고 1억 달러 이상의 대출 연장을 허용한 이사회를 비판합니다. 이 회사는 주주들에게 필요한 변화를 구현하고 주주 가치를 극대화하기 위해 NexPoint의 후보자들에게 GREEN 위임장을 사용하여 투표할 것을 촉구합니다.
NexPoint Real Estate Opportunities a envoyé un courrier critique aux actionnaires de United Development Funding IV (UDF IV) avant l'Assemblée Générale Annuelle des Actionnaires. Le courrier met en avant de graves préoccupations concernant les actions de l'actuel Conseil d'Administration, y compris le fait de ne pas avoir organisé de réunions annuelles pendant huit ans, d'éviter la transparence financière et d'utiliser les fonds des actionnaires pour payer des problèmes juridiques d'anciens dirigeants. NexPoint critique le Conseil d'Administration pour avoir permis que le portefeuille de prêts soit concentré à 98% sur un seul emprunteur et d'avoir autorisé plus de 100 millions de dollars en prolongations de prêts. La société exhorte les actionnaires à voter pour les candidats de NexPoint en utilisant leurs matériels de procuration VERTS afin de mettre en œuvre les changements nécessaires et de maximiser la valeur pour les actionnaires.
NexPoint Real Estate Opportunities hat eine wichtige Mitteilung an die Aktionäre von United Development Funding IV (UDF IV) vor der Jahreshauptversammlung der Aktionäre verschickt. In der Mitteilung werden ernsthafte Bedenken hinsichtlich der Aktionen des aktuellen Vorstands hervorgehoben, darunter das Versäumnis, acht Jahre lang Jahreshauptversammlungen abzuhalten, das Vermeiden finanzieller Transparenz und die Verwendung von Aktionärsgeldern zur Bezahlung rechtlicher Probleme ehemaliger Führungskräfte. NexPoint kritisiert den Vorstand dafür, dass das Darlehensportfolio zu 98% auf einen einzigen Kreditnehmer konzentriert wurde und über 100 Millionen Dollar an Darlehensverlängerungen genehmigt wurden. Das Unternehmen fordert die Aktionäre auf, für die Kandidaten von NexPoint mit ihren GRÜNEN Stimmzetteln zu stimmen, um notwendige Änderungen zu implementieren und den Aktionärswert zu maximieren.
- None.
- No annual meetings held for 8 years
- No financial statements issued for 8 years
- Shareholder funds used to pay former executives' SEC-ordered disgorgement
- Shareholder funds used for former executives' criminal defense
- 98% loan portfolio concentration with single borrower
- Over $100M in loans extended without justification
- Continued payment of management fees to advisor despite fraud concerns
Insights
This proxy battle highlights severe corporate governance failures at UDF IV. The current board's actions represent significant red flags, including the 8-year absence of annual meetings and financial statements, unauthorized use of shareholder funds for legal expenses and questionable loan management practices. The
The financial implications of UDF IV's management decisions are deeply concerning. The concentration of
Vote for NexPoint Nominees to Protect Shareholders' Interests and Maximize Value
- Shareholders can review the full mailing here.
UDF IV continues to provide a misleading account of the actions of UDF IV's current Trustees that ignores their role in extensive misdeeds that have damaged shareholders. At the same time, UDF IV continues to mischaracterize NexPoint and its nominees.
The UDF IV Board's egregious actions speak for themselves. The mailing considers how some of the current Trustees' actions to date have impacted shareholders.
For example, the current Board:
- Allowed UDF IV to go eight years without an annual meeting;
- Changed the Company bylaws to avoid standing for reelection;
- Allowed UDF IV to go eight years without issuing any financial statements;
- Actively fought NexPoint's efforts to force an annual meeting, election of all independent trustees, and any level of financial transparency;
- Approved use of shareholder funds to pay former executives' SEC-ordered disgorgement;
- Approved use of shareholder funds to pay for former executives' criminal defense;
- Has taken no action against the Company's advisor for defrauding UDF IV shareholders, which continues to enrich former executives while they serve prison sentences;
- Permitted UDF IV's loan portfolio to become dangerously concentrated around a single borrower, representing
98% of the Company's unaffiliated debt; and - Inexplicably, and without any justification, allowed over
$100 million
Shareholders finally have the chance to replace the current Trustees by voting FOR NexPoint's nominees. Voting information can be found here.
Shareholders are encouraged to vote FOR NexPoint's nominees 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
Voting Assistance
Email: info@okapipartners.com
Phone: (212) 297-0720
General Inquiries
Email: udfinvestors@nexpoint.com
Media Relations
Email: nexpointteam@reevemark.com
Investor Relations
Email: ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
FAQ
What are the main issues NexPoint identified with UDF IV's current Board?
How can UDF IV shareholders vote for NexPoint's nominees?
What percentage of UDF IV's unaffiliated debt is concentrated with a single borrower?
