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 liquidit脿.
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 atenci贸n de los fracasos de la actual Junta. UDF IV envi贸 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 est谩 tratando de desviar la atenci贸n de la mala gesti贸n de la Junta, que ha resultado en una significativa p茅rdida de valor y liquidez.
NexPoint destaca que la actual Junta de Fideicomisarios de UDF IV supervis贸 a帽os de fraude por parte de exejecutivos, quienes fueron condenados y est谩n cumpliendo penas de prisi贸n. La Junta tambi茅n autoriz贸 el uso de fondos de los accionistas para defender legalmente a estos ejecutivos. NexPoint, con $14.5 mil millones en activos inmobiliarios bajo gesti贸n, est谩 nominando a cuatro candidatos independientes al Fideicomisario para reemplazar a la actual Junta, con el objetivo de hacer cumplir los acuerdos de pr茅stamo, perseguir a los prestatarios incumplidores, gestionar gastos y maximizar el valor de los activos para los accionistas.
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NexPoint met en garde les actionnaires de United Development Funding IV (UDF IV) contre les r茅centes tentatives de l'entreprise de d茅tourner l'attention des 茅checs actuels du Conseil. UDF IV a envoy茅 une lettre aux actionnaires soulevant des pr茅occupations concernant le leadership de NexPoint, que NexPoint affirme contenir des d茅clarations fausses et reproduire des attaques ant茅rieures. NexPoint soutient qu'UDF IV essaie de d茅tourner l'attention de la mauvaise gestion du Conseil, ce qui a entra卯n茅 une perte de valeur et de liquidit茅 significative.
NexPoint souligne que l'actuel Conseil d'Administration d'UDF IV a supervis茅 des ann茅es de fraude de la part d'anciens dirigeants, qui ont 茅t茅 condamn茅s et purgent des peines de prison. Le Conseil a 茅galement autoris茅 l'utilisation des fonds des actionnaires pour d茅fendre l茅galement ces dirigeants. NexPoint, avec 14,5 milliards de dollars d'actifs immobiliers sous gestion, nomme quatre candidats ind茅pendants au poste de Trustee pour remplacer l'actuel Conseil, visant 脿 faire respecter les accords de pr锚t, 脿 poursuivre les emprunteurs d茅faillants, 脿 g茅rer les d茅penses et 脿 maximiser la valeur des actifs pour les actionnaires.
NexPoint warnt die Aktion盲re von United Development Funding IV (UDF IV), sich nicht von den j眉ngsten Versuchen des Unternehmens ablenken zu lassen, die aktuellen Misserfolge des Vorstands zu verschleiern. UDF IV hat einen Brief an die Aktion盲re verschickt, in dem Bedenken hinsichtlich der F眉hrung von NexPoint ge盲u脽ert werden, die NexPoint zufolge falsche Aussagen enth盲lt und fr眉here Angriffe wiederholt. NexPoint argumentiert, dass UDF IV versucht, von der Fehlleitung des Vorstands abzulenken, die zu erheblichen Verlusten von Wert und Liquidit盲t gef眉hrt hat.
NexPoint hebt hervor, dass der derzeitige Vorstand von UDF IV Jahre des Betrugs durch fr眉here F眉hrungskr盲fte 眉berwacht hat, die verurteilt wurden und Freiheitsstrafen verb眉脽en. Der Vorstand genehmigte auch die Verwendung von Aktion盲rsgeldern zur rechtlichen Verteidigung dieser F眉hrungskr盲fte. NexPoint, das 14,5 Milliarden Dollar an Immobilienverm枚gen verwaltet, nominiert vier unabh盲ngige Treuh盲nder, um den aktuellen Vorstand zu ersetzen, mit dem Ziel, Darlehensvereinbarungen durchzusetzen, bei s盲umigen Kreditnehmern vorzugehen, Kosten zu verwalten und den Verm枚genswert f眉r die Aktion盲re 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鈥攅ven 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鈥攏ot 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:聽Paul S. Broaddus,聽Edward N. Constantino,聽John A. Good, and聽Julie Silcock. Voting information and additional shareholder resources can be found at .
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE:聽NXDT), an affiliate of NexPoint Advisors, L.P.聽
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聽
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.聽 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聽.
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.聽 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聽
Investor Contacts
Okapi Partners: info@okapipartners.com
NexPoint: ir@nexpoint.com
Media Contacts
Paul Caminiti/Pamela Greene聽(Reevemark):聽nexpointteam@reevemark.com
____________________ |
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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