Gregory S. Milligan operates this website in his official capacity as the court-appointed Plan Administrator (the “Plan Administrator”) to update beneficial interest holders in NP Skyloft, DST (“Investors”) on the collection and distribution of settlement proceeds resulting from resolution of the derivative action captioned Stacy R. Schiffman, et al v. Nelson Partners, LLC, et al, Cause No. D-1-GN-22-001980 (“Derivative Action”), severed from Cause No. D-1-GN-21-000097, pending in the 98th Judicial Court of Travis County, Texas (the “Court”). 

The Plan Administrator periodically posts information to this website to keep Investors informed on the distribution process and timeline, including the Nelson Parties’* liquidation of real estate assets to fund settlement proceeds the Plan Administrator will distribute to Investors under the Court approved Stipulation and Plan of Liquidation (“Plan of Liquidation”). A copy of the Plan of Liquidation and related notices to Investors are available here. 

Please check this website regularly for the latest updates and documents.** Investors or their representatives with questions about the Plan of Liquidation can submit such questions using the “Submit Inquiry” link above. The Plan Administrator will strive to answer as many inquiries as it can through the FAQ section of the website.  

The Nelson Parties have agreed to a $50,000,000 settlement as detailed below and in the Plan of Liquidation itself.  The Court approved the Plan of Liquidation to fund the settlement of the Derivative Action and a pro rata recovery to Investors on account of their beneficial interests in NP Skyloft, DST. The Plan of Liquidation requires the sale of certain real estate owned by the Nelson Parties and was structured to achieve liquidation proceeds (“Liquidation Proceeds”) of $50,000,000, which the Nelson Parties will fund to the Plan Administrator over time as each real estate sale closes and funds. The Nelson Parties are required to file monthly reports with the Court describing their progress in the marketing and sale of real estate and funding the Liquidation Proceeds required by the Plan of Liquidation. The Nelson Parties reports are available here. 

The Plan of Liquidation requires the Nelson Parties to fund the first $30,000,000 of Liquidation Proceeds in January of 2023 and the remaining $20,000,000 of Liquidation Proceeds in October of 2023.  The Plan Administrator is required to hold any Liquidation Proceeds received for no less than 90 days before making a distribution to investors. 

The Court has approved attorney’s fees to plaintiffs’ counsel in the Derivative Action equal to 20% of the actual Liquidation Proceeds received, plus approved expenses.  These fees will be paid on a pro rata basis when distributions are made to Investors. Assuming the Nelson Parties fund the entire $50,000,000 as agreed, approximately $10,000,000 in fees and expenses will be paid to plaintiffs’ counsel and $40,000,000 will be paid to Investors on a pro rata basis. The Plan Administrator will hold Liquidation Proceeds in escrow until the Court authorizes distributions. The Plan Administrator will obtain Court approval for procedures to determine the final list of holders of beneficial interests in NP Skyloft, DST and the value of interests attributable to each Investor before calculating and distributing any pro rata amount to Investors. The Plan Administrator will post these procedures and all related orders from the Court on this website when they become available.

The Plan of Liquidation and the settlement embodied in it resolves all claims on behalf of NP Skyloft, DST against the Nelson Parties and will result in the complete dismissal of the Derivative Action with prejudice upon payment of the amounts set forth in and fulfillment of the Plan of Liquidation.
 

*This website is not operated by Nelson Partners, LLC, Nelson Brothers Property Management, Inc d/b/a Nelson Partners Property Management, Inc., NP Skyloft Equity, LLC, and Patrick Nelson (collectively, the “Nelson Parties”) or any of their affiliates.  Investors or shareholders of other funds managed by the Nelson Parties should contact the Nelson Parties for information regarding those matters.

** This website is not intended to, and cannot realistically, include all information an Investor might consider relevant, and the Plan Administrator cannot provide any legal, tax or other advice to Investors.