UDF IV Board Silent on Critical Shareholder Concerns Raised by NexPoint
Board Continues Deflection Tactics to Avoid Accountability
Current Trustees Refuse to Answer Serious Questions, Highlighting Need for New Leadership
DALLAS, Nov. 7, 2024 /PRNewswire/ -- NexPoint Real Estate Opportunities, LLC (together with its affiliates "NexPoint") provided an update on United Development Funding IV ("UDF IV" or the "Company") and the current Board of Trustees election.
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: [email protected] 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:
[email protected]
(212) 297-0720
General Inquiries:
[email protected]
Media Relations:
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Investor Relations:
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SOURCE NexPoint Advisors, L.P.