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Greystone is a non-accelerated filer, so it has 90 days to file its 10-k....so it's basically due at the end of August.
https://www.broadridge.com/resource/corporate-issuer/edgar-filing-calendar
Good to know. Does discovery stop until these motions are heard, or does UDFI still have to meet the deadlines included in the prior motions to compel?
I assume discovery stops, but obviously am not a lawyer.
The next report is the 10-k, not 10-Q. It comes out in August.
https://www.sec.gov/edgar/browse/?CIK=1088413&owner=exclude
If you're going to pump it, at least get your facts straight. Earnings won't be released until late August because May 31 was GLGI's fiscal year-end.
I checked Pacer last week and there was not yet a ruling.
UDF filed another motion to dismiss Nexpoint’s case. I have no idea of its merits, but a hearing on it isn’t scheduled until late July. Delay, delay, delay.
It looks like the Nexpoint suit is finally moving along. The motions to compel depositions and document production were approved. I don't know how much info will end up on the Court's website though (probably not much, unless it's included as an exhibit to a filing)....maybe Nexpoint should post some of the discovery to a website, like UDF did with Bass's emails. ;)
Also, only 8 more days until the start of Q3. Any predictions on the date the neverending audit is released?
If you look at the last pg of the last 10-k, it tells you when they were filed with the SEC.
Declaration of Trust was filed with the 10-Q on 8/13/14.
Amended Bylaws were filed 7/31/14.
The Bylaws were amended again when they staggered the terms of the Trustees. That was after the last 10-K was filed.
https://www.sec.gov/Archives/edgar/data/1440292/000110465920085692/tm2025364d1_8k.htm
I assumed the only remedy shareholders have is to vote out the trustees. That requires an annual meeting, which apparently requires audited financials. I believe that is included in Nexpoint’s suit.
They just announced another 6.5 cent distro payable on 6/30.
$65 million for the felons. 6.5 cents for the shareholders. Seems fair… :)
It will only take another 999,999,999 quarters for a shareholder (owning a single share) to receive the same amount that the felons received.
I wonder if we’re going to get our meager return of capital this quarter. It’s usually announced by now.
Anyone get instructions from their broker yet?
I don’t think you can look at UDF’s business model without looking at management’s actions the last 8 years. The fact they wouldn’t get an audit tells you that they knew the business model was shady.
I guess you can quibble over the term “ponzi” but regardless, it was going to blow up one way or another. IIRC, one of the early funds was charging ~50% interest rates on some of its loans. Nobody in their right mind would think a borrower could ever pay back a loan with that kind of rate. What, does UMTH have mob enforcers on their payroll?
Nexpoint amended its suit again…removing the defendants they added last month (Kenney, etc). They must figure that the inclusion of those defendants makes it more likely the case is dismissed due to the forum selection clause.
UDF loans Buffington x.
Buffington spends y on overhead, etc.
If Buffington is like Moayedi, then he also uses part of x (call it z) to pay off prior loans to UDF entities.
Buffington invests x - y - z in land.
X has some absurd interest rate, so x is growing at ~15% per year.
Buffington sells the land for q.
Q < x because only z was invested in land and x now equals (1.15^n)x where n = number of years the loan is outstanding.
UDF hopes its new entity (V) can loan Buffington money on “new projects”, so Buffington can use that money to pay back the old UDF loans (ie kick the can down the road). UDF was so desperate to keep the game going that it even lied to its auditors.
The plan was already falling apart when Bass put the final nail in the coffin.
Your link says Buffington Homebuilding Group sold for $40 million in 2021.
That's different than Buffington Land Development, which I believe is the entity that had the loans written off.
If I understand it correctly, Buffington Land Development buys the raw land (with loans from UDF) and develops the land into lots. Buffington Homebuilding Group buys the lots from Land Development and builds & sells the actual houses.
I don't know if Homebuilding Group had loans from UDF.
The $68 UDF IV balance and $40 liquidation proceeds were mentioned in one of Greenlaw’s affidavits in the Bass case, so you were correct.
The link related to the following loans:
UDF I - $34 million. All but 450k was written off.
UDF III - $122.5 million. All but 450k was written off.
UDF IV - $180k loan. Nothing written off.
It’s quite remarkable that UDF had ~$157 million loaned against 6 residential lots and 4.56 acres of land. No wonder 99% of the loans were written off.
You’re probably right about the UDF IV writeoff. I remembered the UDF III 8-k related to Buffington (which is what I linked to), but don’t recall an 8-k for IV. Maybe they deemed it immaterial or it happened after the stock was deregistered?
They were written off.
https://www.sec.gov/Archives/edgar/data/1335732/000114420417001162/v456493_8k.htm
It was Bass’s fault. Of course.
We should be hearing about the execs’ appeal soon. I think the hearing was in early Feb and the Court was supposed to rule in 30-90 days.
Anyone hear anything on the neverending audit? Isn’t it supposed to done in Q3?
Looks like UMTH filed a “renewed motion to dismiss.”
Is that the same thing as Demi Moore’s character in A Few Good Men “strenuously objecting” to the judge’s ruling in the movie?
I don’t see how an uplisting makes sense. They’d probably have to do a 1-5 reverse split at a minimum, as there’s no sense uplisting if the share price is a buck.
If they do a 1-5, there’d be < 6 million shares o/s and probably < 3 million shares of float. The only way I see an uplisting happening is if they merge with Trienda first.
If I were him, I’d just keep trying to increase the co’s profits, and good things will eventually happen. Uplisting is a solution to a non-existent problem, imo.
I assume you also saw the conference call transcript. It is nice to finally get info from the company. Q4 sounds like it should be a profitable one.
I don’t see how an uplisting makes sense. They’d probably have to do a 1-5 reverse split at a minimum, as there’s no sense uplisting if the share price is a buck.
If they do a 1-5, there’d be < 6 million shares o/s and probably < 3 million shares of float. The only way I see an uplisting happening is if they merge with Trienda first.
If I were him, I’d just keep trying to increase the co’s profits, and good things will eventually happen. Uplisting is a solution to a non-existent problem, imo.
I assume you also saw the conference call transcript. It is nice to finally get info from the company. Q4 sounds like it should be a profitable one.
The court’s website currently shows an April 2024 trial date. I’d be surprised if it’s not pushed back though. The case was originally filed in August…8 months later and discovery still hasn’t started.
Anyone have experience with appraisal rights?
The stock is up nearly 100% YTD. Why in the world are you even thinking about naked short selling affecting the price?
This company's balance sheet is still a mess. The debt is in default. The interest rates are outrageous. It's paying Carroll guarantee fees on the loans. It has a lot of related party issues. Who knows how long the outsized refining margins will last. It barely made money in normal years in the past.
I own shares, but let's not pretend like this company has no issues.
Kruger is really trying to get the word out. Interview with him on Planet Microcap.
UMTH's appeal in the Nexpoint case was denied.
I hope we'll get to see some information soon regarding all the legal fees UMTH so graciously had us pay for the felons.
Nice to see Ravich screwing the small shareholders. Can’t say anyone should be surprised.
The deregistration was to protect future buyers of the stock, not those that held the stock. The stockholders presumably knew the risk they were taking and had plenty of time to sell. I don’t think the SEC can be faulted for that.
Allowing Greenlaw, et al to remain in charge as part of the settlement is a different story.
I agree they have financial risk, but that's separate from UDF's ability to collect any damages.
I guess it depends on how much insurance the company has, but I doubt UMTH, Greenlaw, etc have much money sitting around to pay any damages that may be awarded.
That's why I think the upside to the lawsuit is just getting rid of current mgmt / trustees and getting someone in there that will do what's best for the shareholders (collect from Moayedi and/or liquidate if that is the best course of action).
They hired an investors relation guy. It seems like a weird thing to issue a PR for...especially when they haven't issued an earnings release the last two quarters.
Do you guys think there’s any chance of clawing material amounts of money back from UMTH and the felons?
I figured the legal fees are spent and gone, so the upside of the Nexpoint suit is to boot the mgmt group. Get someone in there that will try to collect the Moayedi loans, issue financials and run this like a real business.
Maybe shareholders can ask the Angela and Hollis Greenlaw Legacy Foundation for some money.
https://projects.propublica.org/nonprofits/organizations/463021077
Er…maybe not.
Seems like a fitting legacy, no?
Nexpoint amended its lawsuit to include the trustees.
I hope they’re successful. The trustees are every bit as responsible for this mess as the convicted felons are, imo.
The inventory buildup has been entirely due to HOBM. Anyone know why that is and/or what type of margins they earn on HOBM sales?
I remember looking for that form years ago, before UDF had released any shareholder info.
The deadline to file is:
Q1 results were released awhile back. I calculate ~$3.50 bv per share, assuming conversion of the debt.
$10 million of the opportunity fund investment was invested in the redevelopment of a Harrah’s casino in Reno. It’s being turned into apartments, grocery store, etc. No financial details were released, but it seems promising to me (assuming, of course, that Ravich didn’t overpay).
https://www.rcclive.com/
AMRK is interesting to me. It’s cheap on a PE basis, but insiders are selling. I’m wondering if its current results are sustainable or if this is a classic case of a cyclical looking cheap at the top of a cycle.
An order was filed yesterday dismissing the suit against Bass, with each side paying their own legal fees.
Bass’s attorney also filed a Motion for Sanctions against UDF. I’m guessing that Motion replaces Bass’s countersuit for attorney’s fees? I found the motion pretty compelling and think Bass probably deserves some compensation….even though it’ll be coming out of our pockets (good luck getting the felons to do the right thing).
Hollis was pleading the 5th way back in 2015 or 2016 in the SEC case….and he kept his job for another 5 years, literally until the day he was convicted. You can’t make this shit up.