On August 12, 2020, NexPoint submitted a books and records demand (the "Demand") to the Trust's Board of Trustees (the "UDFI Board"). NexPoint (through Cede & Co., the record holder of its shares) submitted the Demand to the UDFI Board to determine the financial condition of the Trust and the value of its UDFI shares, as the Trust has not filed a Form 10-K (along with other required periodic Exchange Act reports) in five years.
On August 13, 2020, NexPoint announced via press release its submission of the Demand. In the press release, NexPoint also addressed several inaccurate claims that the UDFI Board made about NexPoint's current and past involvement with the Trust.
Subsequent to NexPoint's submission of the Demand, the SEC revoked the Exchange Act registration of UDFI, effective August 13, 2020, for violations of their reporting obligations that "are serious, recurrent, and show a high degree of culpability." In its order, the SEC concluded that the Trust's reporting record provides "substantial reason to doubt that [UDFI] will return to compliance and avoid delinquencies in the future." These conclusions validate the submission of the Demand, and further demonstrate the need for NexPoint's continued efforts to obtain the books and records of the Trust—for the benefit of all UDFI shareholders.
About 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.