United Development Funding IV fka UDFI

[Jh5142]

I’m not sure. But I could speculate some reasons:

1. Delay reporting financials until after they get through the appeal from Bass in the lawsuit. Right now Hayman doesn’t have access to financials. If they did, I wonder if it would strengthen their case. Now they will get past the appeal without having to show bass the financials.

2. The longer they wait, interest accrual from the remaining performing portfolio loans will continue to add value. This will make the book value higher as more time goes by offsetting whatever write off’s they may have taken.

3. There were a good number of loans on the books that did not have any actual on site development activity after several years. Maybe they want to delay reporting long enough to get development activity on all sites backing loans. It won’t look good if land backing loans continues to remain undeveloped with another three years having gone by.

4. Some of the loans collateral is reimbursements. Typically, reimbursements are not realized until houses are being built and new homeowners are paying additional taxes that go towards the reimbursements. Waiting for houses to be built will make it easier for the auditors to justify the collateral value from the reimbursements that’s support the loans.