Replies to post #1387 on United Development Funding IV fka UDFI

[Phaedrus77]

I went back to my old messages and came up with the following:

According to a bond prospectus, Centurion owed UDF $836,900 @ 3/31/20.

@ 9/30/15, Centurion owed UDF $679,000. Of that amount, $386,000 (or 57%) was owed to UDF IV.

$836,900 x (386,000 / 679,000) = $475,763.

UDF only had around $40 million of cash at 12/31/20 and a net loan book of ~$300.

I can see the following scenarios:

1) Centurion is paying the UDF IV loans faster than the other UDF loans. BUT, if this was the case, UDF's cash balance should be higher than $40 million. If they recycled Centurion pmts to other borrowers, their loan book should be higher.

2) V loaned a bunch of money to Centurion for new projects (i.e. it wasn't just the felons using V money to repay IV loans...using V money to repay IV is the same net effect as (1) above). That would cause IV's % share of the $836,900 to be much lower than it was in 2015. But, how much money did V raise and how many loans did it fund before Bass put the kibosh on it?

3) UDF IV has reserved quite a bit against Centurion's balance and/or isn't accruing interest. Seems like a positive, but then again, if they've written off this much, who's to say they don't need to write off more.

4) Is IV's loan book basically 100% Centurion now? How did UDF fund an additional $157 million to Centurion after the Bass attack? It couldn't raise any outside capital. It had to repay all of its lines of credit. The obvious answer is that the interest on the loans isn't being repaid and it's just compounding at 13% (or whatever) and Centurion has no hope of repaying. The other answer is that Centurion is their only borrower.

Any other explanations?