HGLB - Highland Income Fund: High Discount High Yield Questionable Corporate Governance And Lots Of Drama

• HFRO pays an 8.5% distribution yield and trades at a 22% discount to NAV.
• HFRO management is recommending a conversion from an income-based closed-end fund to a diversified holdings company.
• Phil Goldstein, Mike Taggart, Tom Herzfeld and ISS (corporate governance advisor) have all come out opposing the HFRO conversion plan.
• HFRO and sister fund NHF have a long running lawsuit with Credit Suisse originally filed in 2013. The two funds were awarded $121 million before litigation expenses, but Credit Suisse has appealed the case.
• HFRO has offered several shareholder-friendly "inducements", but these will only occur if shareholders vote to approve the HFRO conversion plan.

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