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Bass filed for a 75 day delay of the trial date. He claims UDF is too slow in producing documents.
Replying to my original post with numbers from Greenlaw’s affidavit.
At 9/30/15, Centurion’s balance was 679 with 386 of that at UDF IV.
So either UDF IV has reserved losses against Centurion loans or Centurion paid down a bunch in Q2-Q4 2020. If it paid down a bunch, you’d expect IV’s cash balance to be higher.
Also, I wonder if the loan portfolio is now 100% Centurion.
I’m wondering how to reconcile the bond prospectus that said Centurion owed $800+ million to UDF at 3/31/20 with these financials that show $330 of loans at 12/31/20.
The $800 million is obviously across all UDF entities, but isn’t UDF IV the largest? I need to find my notes about the amount of Centurion loans that were in UDF IV vs the total amount owed to Centurion. I think that figure was given in Holly’s affidavit or some other legal filing.
Thanks. It’s paid about $2.90 in dividends too, so BV didn’t really take much of a hit.
Not sure how much you can extrapolate that to UDF IV, but seems like good news.
What’s the date of the balance sheet?
Last public balance sheet (9/30/15) showed $34.2 of equity on 2.2 million shares.
What’s the defense for pocketing fees for 6 years while leaving the owners completely in the dark?
The Order that required UDF to produce financials was only a Proposed Order. An Order signed by the judge hasn’t been filed, so it’s possible the Proposed Order was rejected or subject to further negotiation.
All of the financial information is subject to a protective order, so nothing will be available to the public until/unless UDF chooses to release it.
In one of the defendants’ replies filed on July 13th, they mention that they have received the “UDF General Ledger for 2020.” It’s odd that they only say “UDF” because in other instances they specifically say, “UDF III” or “UDF IV”. it’s quite simple to generate financial statements if you have the GL. So, assuming “UDF” includes both “UDF III & UDF IV”, Bass has all the information that is needed to generate financial statements.
The GL is also how Bass would know that Holly & Friends paid their SEC fines with UDF money. That assumes Bass read the GL correctly (which I’m guessing he did...it’s not that difficult).
Anyone know if Symbiotic’s automated solution uses plastic pallets?
https://www.supermarketnews.com/technology/walmart-kicks-automation-25-regional-distribution-centers
Nobody has a clue because they won’t release any information and won’t hold an annual meeting.
The only clue we have is that the stock is deregistered. Remember back in August when they promised to release an update (including financial info) in September? Yeah, so do I.
Link to letter appointing Special Master:
https://courtsportal.dallascounty.org/DALLASPROD/DocumentViewer/Embedded/hKLTItIwwQO3_cTF_rBycMeYiFPXfZU_aER2KQZLPOgicmfaWcO6INPVs9gUQdizzr4DFsSo70Sq_gHD1DTWaA2?p=0
“Whereas the damages in dispute could exceed one billion dollars.”
That’s obviously just a claim from the plaintiffs and is across all UDF funds, not just IV.
Special Master for discovery was just appointed. It’s the same judge (Akin) that has been hearing all the discovery disputes.
The filing says the damage claim could exceed $1 billion. We’re all rich! ;)
I agree regarding the trial timeframe.
Surely UDF isn’t just delaying the financials so mgmt can continue to collect its fees before finally announcing that it’s bust, right?
I mean, not even Hollis would do that, would he?
Even though he allegedly (according to Bass) had the company pay his personal SEC fine. And even though he put in a poison pill and staggered the BoD in order to maintain control. And even though he hasn’t had an annual meeting, or given shareholders a scrap of financial information in nearly 6 years.
Tell me I’m paranoid...please. ;)
A letter was filed yesterday saying financial info would be produced at the end of next week. Of course they wait until right before the deadline. If I was suing someone for calling me a ponzi, and I had nothing to hide, I’d produce my financials on day one.
I’m comforted by PWC and E&Y both saying the old financials were legit, but I also realize that’s coming from UDF management’s mouth. For all we know, PWC and E&Y could have found multiple issues that UDF just downplays. Much like they downplay the falsified spreadsheet.
Either way, I hope we see them next week. It’ll be interesting.
“I guess we’ll find out shortly.”
Famous last words. We’ve been hearing that bullshit from Hollis for 5 years now. The auditors were supposedly “diligently working” after the SEC settlement two years ago. My guess is they don’t release them publicly and/or they come up with some other bullshit reason why they can’t produce them.
I think a $15 bv would strengthen the damage claim. If bv comes in at $5, then you’ve got to think it was at least partially a house of cards.
If it’s $15 then Bass was obviously wrong. Since they haven’t paid more than token dividends the last 5 yrs, you could claim bv would be north of $20 by now, absent Bass. Not to mention the other growth initiatives...new debt, etc.
In the Lennar case, I think damages were based entirely on the hit to market cap.
Not to mention that I’d rather own stock in a legit business as opposed to being dependent on a lawsuit victory (which will drag on in appeals if UDF wins, plus they have to actually be able to collect any damages that are awarded).
Actually it’s a different lawyer. Bass changed after his other lawyer was sanctioned.
A proposed order was filed today giving UDF until July 15 to produce current financials. I hope they decide to release them publicly at the same time.
“Who cares about the Buffington sheet?” Uh, I bet any potential auditor would.
There’s a defense filing today that says UDF still hasn’t produced financials for any time period after the attack. They also claim the doctored spreadsheet for the Buffington loans still hasn’t been produced.
Nice to know that it’s not just its owners that UDF mgmt is leaving in the dark.
UDF makes it sound like they are angels and have never done a single thing wrong. Bass claims Greenlaw is a sociopath that threatens to kill people, among other things.
I’d like to believe UDF isn’t full of shit in how it represents itself, but my guess is that the truth lies somewhere in the middle. Bass brings up a good point in that Greenlaw, etc had the company pay the SEC fine that was leveled against the executives. If it’s true, that’s some pretty shitty behavior.
The redacted complaint in the Bivens suit is posted on the UDF website. It makes for interesting reading.
http://www.udfonline.com/bivens-action/
I think the court was the one asking if UDF was still operating. I agree that it does Bass no favors if it’s not operating and is a shell.
Interesting couple of blurbs in Hayman’s new filing.
1). Emails produced by EisnerAmper show that it concluded UDF’s loans should’ve been impaired long before the Hayman posts. Eisner is UDF’s new auditor. It doesn’t say what loans, so it could be talking about the Buffington loans that were eventually impaired (small impact on UDF IV) or it could be talking about others.
2) Defendants are positive that UDF is no longer operating and is nothing more than a shell entity. This could just be more bs from Bass, but it would be nice if the court orders UDF to produce current financials.
“apart from the fact that loan balances have individually been re-paid.”
Is that documented anywhere?
Interesting filing today regarding the motion to compel Casey Ford’s deposition. He used to be the CFO of Centurion and Bass is claiming Ford may have been the whistleblower that went to the FBI.
The motion also includes Centurion’s most recent loan balance of $836 million (info that was posted on this board earlier). Bass says that this proves his claim that Centurion wasn’t (or couldn’t) pay its debts is accurate. It’ll be interesting to see if UDF addresses that, or provides more information on the balance, in a rebuttal filing.
Turns out the case UDF won was related to a disparagement claim filed by NHF. It has nothing to do with their other suits.
Wasn’t Nexpoint basically just trying to get UDFI to release financial information and hold an annual meeting?
In one of the filings, the lawyers said they were going to go after Bass for the loss in UDF III. UDF supposedly had a deal to sell the Buffington land holdings to a 3rd party, but the deal fell through after Bass’s attack. UDF ended up having to take a $100+ million write-down on Buffington.
There’s an affidavit from the 3rd party stating that the deal fell through because of Bass. You can find it on the UDF website somewhere. It was filed early in the proceedings.
I have no idea what UDF’s chances are of prevailing on that part of the suit.
Bunch of discovery updates on UDF’s website today.
I think Q3 2020 was an anomaly.
The concerning news is the arbitration with igps.
The good news is the surprise order from Miller and the $8 million order from Wal-Mart (I assume). Both in Q4, I think.
I guess no dice on the employee retention credit.
Tomorrow is the deadline to file on time...45 days after quarter end.
I’m not expecting much operationally. Will be interesting to see what kind of impact Miller has.
If the PPP loan was forgiven, it would obviously be a big boost to EPS. I’m also curious to see if they qualify for the employee retention credit. That could be another $2 or $3 million boost to income.
I hope that's the case. I'd be nice if they were more diversified though. The balance to Centurion is now bigger than the entire loan book at 12/31/16.
I don't see anything either. Wonder if it got pumped in some penny stock newsletter or something.
Based on this bond offering, Centurion’s balance with UDF was $836,900,000 at 3/31/20.
https://www.fmsbonds.com/wp-content/uploads/2020/09/TXCelina03a-POS-2.pdf
The previous balances were:
$681 at 12/17
$726 at 6/18
$733 at 12/18
Assuming a 12% rate, it doesn’t seem like Centurion repaid much of anything in 2019. Probably not a great sign. If Centurion can’t repay the loans in this housing market, you’ve gotta wonder if they’ll ever be able to repay them.
Is anyone able to access the court docket? CC-17-06253-C isn’t pulling anything up for me.
I agree this has potential and liked it a lot below 20 cents. I sold much too early (around mid-40s). At this price, I think you’re paying an awful lot for that potential.
Icahn has a history with nanocap NOL shells. Do some research on Cadus (KDUS) and Voltari. In both instances, he bought minority shareholders out before the NOLs were utilized. So I wouldn’t count on a big merger. I definitely don’t think ENZN will be buying Bausch (which probably means it’ll be announced tomorrow).
Maybe this still works from here, but imo it’s a gamble. It could run to a dollar simply on hysteria or it could fall back to 20 cents if the current SPAC mania goes away. Who knows...I plan on just watching and buying if it goes back to 20 cents. If I miss out, it won’t be the first time.
Most of the cash is due to the preferred stock.
If my company has 1 common share outstanding and $1 of cash, the common share should be worth $1. If my company sells 10 shares of preferred stock and receives $10, the common share is still worth $1 even though there is $11 of cash on the balance sheet.
In ENZN’s case, it has about 12 cents per share of cash after you back out the preferred stock liability.
Schwab’s 1099 doesn’t show UDF’s distributions as return of capital. Does anyone know if other brokers show the same? I wonder if this is a mistake or if UDF actually had income.
Still no IRS Form 8937 on the website, but IIRC, it was posted late last year as well.
http://www.udfiv.com/irsform/
According to the latest court filing, UDF has now turned over loan files, bank files and accountant workpapers to Bass. Maybe the case is finally moving forward after all the shenanigans.
You keep saying that about the 64 cents in cash. They have $40 million of preferred stock, which is the same as debt.
Net cash is actually about 12 cents per share.
I’d be careful about buying up here, as nothing has changed since this was selling for 20 cents.
If UDF shows a NAV of $4/share when it finally releases its financials, then it’s going to be awfully hard to win a lawsuit, no matter what Bass did.
I think Bass is a shithead. I also think that Hollis is equally bad. I talked to IR 3-4 years ago and they said their number one priority was getting the audit done so they could re-establish their bank lines and get back to business. What happened to that?
All we get is empty promises about updates (remember IR promising an update in Sept after the stock was delisted?), a bunch of expensive lawsuits blaming everyone but themselves and lately, a bunch of corporate moves designed to further entrench management.
Bass didn’t cause the SEC fines or the fines levied on the auditors. Maybe UDF is having trouble finding an auditor because they lied to the last one and the same management team is still in place.
Imo, UDF management does not deserve the benefit of the doubt after the way they’ve treated shareholders the last 5 years.
Looks like “the smoking gun” email will be released to the public soon. I don’t know about you, but I’m prepared to be disappointed.
The only “smoking gun” I’m interested in seeing is a current financial statement showing that UDF wasn’t overstating its assets.