UDF IV Board Silent on Critical Shareholder Concerns Raised by NexPoint
NexPoint Real Estate Opportunities provided an update on the United Development Funding IV (UDF IV) Board of Trustees election, highlighting the Board's failure to address critical shareholder concerns. The current Board is accused of using deflection tactics to avoid accountability for past criminal misconduct, disclosure violations, and governance failures. Key unaddressed questions include the Board's inaction after criminal convictions of former executives, continued payments to imprisoned executives through advisory agreements, and lack of plans to maximize shareholder value. NexPoint urges shareholders to vote using the GREEN proxy card to replace current Trustees with their nominees to implement critical changes and recover value.
NexPoint Opportunità Immobiliari ha fornito un aggiornamento sulla nomina del Consiglio di Amministrazione del United Development Funding IV (UDF IV), evidenziando il fallimento del Consiglio nell'affrontare le criticità sollevate dagli azionisti. L'attuale Consiglio è accusato di utilizzare tattiche di distrazione per evitare la responsabilità per precedenti comportamenti illeciti, violazioni di divulgazione e fallimenti nella governance. Le principali domande rimaste senza risposta includono l'inazione del Consiglio dopo le condanne penali di ex dirigenti, i pagamenti continuati a dirigenti incarcerati tramite accordi di consulenza e la mancanza di piani per massimizzare il valore per gli azionisti. NexPoint esorta gli azionisti a votare utilizzando la scheda verde per sostituire gli attuali fiduciari con i loro candidati, al fine di implementare cambiamenti critici e recuperare valore.
NexPoint Oportunidades Inmobiliarias proporcionó una actualización sobre la elección de la Junta de Fideicomisarios de United Development Funding IV (UDF IV), destacando la incapacidad de la Junta para abordar preocupaciones críticas de los accionistas. Se acusa a la Junta actual de utilizar tácticas de distorsión para eludir la responsabilidad por conductas delictivas pasadas, violaciones de divulgación y fallos en la gobernanza. Las principales preguntas sin respuesta incluyen la inacción de la Junta tras las condenas penales de ex ejecutivos, los pagos continuos a ejecutivos encarcelados a través de acuerdos de asesoría y la falta de planes para maximizar el valor para los accionistas. NexPoint insta a los accionistas a votar utilizando la tarjeta de poder VERDE para reemplazar a los actuales fideicomisarios con sus nominados y así implementar cambios críticos y recuperar valor.
NexPoint 부동산 기회는 United Development Funding IV (UDF IV) 이사회 선거에 대한 업데이트를 제공하며, 이사회가 주주들의 중요한 우려 사항을 해결하지 못하고 있음을 강조했습니다. 현재 이사회는 과거의 범죄 불법 행위, 공시 위반 및 관리 실패에 대한 책임 회피를 위해 회피 전술을 사용하고 있다는 비난을 받고 있습니다. 주요 미해결 질문들은 이사회가 전직 임원들의 범죄 유죄 판결 이후에도 아무런 조치를 취하지 않은 것, 자문 계약을 통해 수감된 임원들에게 계속 지급하고 있는 것, 그리고 주주 가치를 극대화할 계획이 없는 것입니다. NexPoint는 주주들에게 현재의 수탁자를 교체하고 중요한 변화를 이끌어내기 위해 초록색 위임장을 사용하여 투표할 것을 촉구합니다.
NexPoint Opportunités Immobilières a fourni une mise à jour sur l'élection du Conseil de fiduciaires de United Development Funding IV (UDF IV), soulignant l'échec du Conseil à traiter les préoccupations critiques des actionnaires. L'actuel Conseil est accusé d'utiliser des tactiques de diversion pour éviter d'être tenu responsable d'inconduites criminelles passées, de violations de divulgation et d'échecs de gouvernance. Les questions clés non traitées comprennent l'inaction du Conseil après les condamnations criminelles d'anciens dirigeants, les paiements continus aux dirigeants emprisonnés par le biais d'accords de conseil, et l'absence de plans pour maximiser la valeur pour les actionnaires. NexPoint exhorté les actionnaires à voter en utilisant la carte de procuration VERTE pour remplacer les fiduciaires actuels par leurs candidats afin de mettre en œuvre des changements critiques et de récupérer de la valeur.
NexPoint Immobilienchancen gab ein Update zur Wahl des Vorstands von United Development Funding IV (UDF IV) bekannt und betonte das Versäumnis des Vorstands, wichtige Anliegen der Aktionäre anzusprechen. Der aktuelle Vorstand wird beschuldigt, Ablenkungstaktiken zu verwenden, um die Verantwortung für frühere strafrechtliche Fehlverhalten, Offenlegungsverletzungen und Versäumnisse in der Unternehmensführung zu vermeiden. Wichtige unbeantwortete Fragen umfassen die Untätigkeit des Vorstands nach den strafrechtlichen Verurteilungen ehemaliger Führungskräfte, fortlaufende Zahlungen an inhaftierte Führungskräfte über Beratungsverträge sowie das Fehlen von Plänen zur Maximierung des Aktionärswerts. NexPoint fordert die Aktionäre auf, mit der GRÜNEN Vollmacht abzustimmen, um die derzeitigen Treuhänder durch ihre Kandidaten zu ersetzen und entscheidende Änderungen umzusetzen sowie Wert zurückzugewinnen.
- None.
- Former UDF executives were criminally convicted for defrauding shareholders
- Board continues to pay imprisoned executives through advisory agreements
- Board has failed to present plans for maximizing shareholder value
- Recent financials show troubling trends indicating bleak outlook
- Board's persistent pattern of corporate misbehavior spanning almost a decade
Insights
This proxy battle highlights severe governance issues at UDF IV, with NexPoint raising critical concerns about the board's oversight and accountability. The most troubling aspects include the board's continued financial relationship with convicted executives through an advisory agreement and their failure to address shareholder value maximization.
The current situation presents significant risks for shareholders, particularly given UDF IV's delisting and reporting requirements. The board's defensive tactics and inability to provide clear strategic direction suggest deeply rooted governance problems. Their silence on key issues like executive compensation and value creation plans indicates potential ongoing mismanagement that could further erode shareholder value.
The proxy contest represents a important inflection point for UDF IV's corporate governance. NexPoint's push for board changes could lead to improved oversight and potentially unlock shareholder value through better management practices and increased transparency.
Board Continues Deflection Tactics to Avoid Accountability
Current Trustees Refuse to Answer Serious Questions, Highlighting Need for New Leadership
In a recent letter, NexPoint alerted fellow shareholders of the Company's persistent use of deflection tactics to evade accountability and shift focus away from its own failings. UDF IV has employed these tactics before. The Board and management blamed external parties for criminal misconduct, disclosure violations, and governance failures that occurred for years at UDF IV under the current Trustees. Those accusations against external parties have since been disproven, revealing a pattern of deception used by the Board and UDF management to obscure their own culpability.
- A copy of the shareholder letter can be found here.
In the face of this proxy fight, rather than presenting shareholders with a clear agenda for the Company moving forward, the Board has employed a classic fearmongering campaign: imploring shareholders to fear and improbable threats, while ignoring the Company's well-documented pattern of corporate misbehavior that spans almost a decade and is likely to continue without meaningful change.
The letter urges shareholders to ignore these deception tactics and focus on key questions NexPoint has raised that the current Trustees have failed to answer, including:
- Why did the Board take no meaningful action after the criminal convictions of former UDF executives?
- Why is the Board continuing to enrich those same executives—now serving prison sentences for defrauding UDF IV shareholders—through the Company's lucrative advisory agreement?
- Why haven't the current Trustees provided plans to maximize value and liquidity at any point over the last several years while on the Board—not to mention as part of their bid for reelection today?
These and other unanswered critical questions make clear that the current Trustees and UDF management have no plan beyond clinging to the status quo.
The current Trustees have gone years without showing any accountability; shareholders have no reason to believe they will make any significant changes now. Recent financials reveal troubling trends that provide a bleak outlook for UDF IV unless changes occur. This election is the only opportunity for years to come to effectuate wholesale change by voting for NexPoint's nominees, who will represent shareholders' interests and enact critical change to recover value and liquidity on behalf of all shareholders.
VOTING INFORMATION
Shareholders can vote TODAY to replace the current Trustees, voting FOR NexPoint's nominees using the GREEN proxy card. Follow the voting instructions on your green proxy materials to submit your vote.
If you have already submitted a white proxy card, it's not too late to change your vote. Only the last dated proxy card submitted will be counted.
For detailed voting instructions, visit: udfaccountability.com/voting-information
For voting assistance contact Okapi Partners at: info@okapipartners.com or (877) 869-0171
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") has delivered 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 at this time.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) IN ITS ENTIRETY AS IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROXY SOLICITATION.
Copies of the documents are 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:
info@okapipartners.com
(212) 297-0720
General Inquiries:
udfinvestors@nexpoint.com
Media Relations:
nexpointteam@reevemark.com
Investor Relations:
ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
FAQ
What are the main concerns NexPoint raised about UDF IV's Board of Trustees?
How can UDF IV shareholders vote in the Board of Trustees election?
What actions has UDF IV's Board taken regarding former executives' criminal convictions?
