Highland Income Fund-More News

While this is a week old I just came across this items.

Claymore (a highland affiliate) filed suit against Credit Suisse back in 2013 and thus far has been awarded $393 million by the courts. This has not settled yet.

Any award that is received will be credited to the Highland Income Fund (82%) and Nexpoint Strategic Opportunity Fund (18%).

This would seem to be good news–at least the way I read it.

The press release is here.

10 thoughts on “Highland Income Fund-More News”

  1. I’ll repeat my comment from 9/24 on Highland. While I don’t doubt that HFRO-A is safe I don’t like doing business with Mr. Dondero. Plenty of fish in the sea.

    This surprise Chap 11 stinks to high heaven.

    “I can’t quite figure out if Highland is just incompetent or also corrupt. They took at big stake in RAIT Financial as an activist. I think that was just incompetent. The massively dilutive rights offerings they’ve done at their CEF NHF (nexpoint is a sub) falls more in the corruption bucket.”

    1. Landlord–more than likely just incompetent–I will give them the benefit of the doubt.

  2. I flipped 350 shares for a $ 60 gain. Pays for tonight’s dinner.
    Thank You Guys…Then again it could have gone south too.
    “The New abides”

  3. There is an article on this from 10/8 on SA by (mostly) Trapping Value of HDO on HFRO fund and is a decent deep dive and discussion of the CS and other issues….

  4. That legal award case is going to the TX Supreme court. It was not clear if they would take it, and although Highland had won the earlier rounds, it’s now a bigger question if they’ll win since the SC must think there’s a good reason to possibly overturn the case currently in favor of the Highland funds.

  5. Supreme court reviewing this is bad. They dont review lower court cases for fun so it calls the award into question.

    1. The loan docs between Highland and CS contained provisions that in the event of litigation New York law would apply. So you have Tx. courts applying NY law!!! Moreover, Tx Supreme’s only accept for review about 12% of the cases brought to it, but of those accepted they reverse the lower court about 82% of the time (according to 5 yr. stats study by Tx. appellate lawyer Pamela Baron. So appears huge lower court judgment is in considerable jeopardy. Oral argument set for Jan 2020.

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