NexPoint Advisors is prepared to offer a new path for Medley Capital Corporation (MCC) shareholders if the proposed merger of Medley Management (MDLY) and MCC into Sierra Income Corporation is vanquished.

Dallas-based NexPoint announced late last month its plan to nominate two independent professionals to MCC’s board of directors, through an affiliate, at its next shareholder meeting if the pending transaction does not go through. MCC plans to hold elections for two board spots at its next annual meeting.

This proposal is also contingent on the nomination window reopening prior to the meeting. The window will open if MCC does not hold its annual shareholders meeting within 13 months of the prior year’s gathering, according to the vehicle’s bylaws, which gives it until 15 March to hold the meeting.

The date for a meeting has not been announced and NexPoint predicts that MCC won’t be able to schedule one by its deadline.

“Once the merger transaction is defeated, NexPoint hopes to make changes to MCC’s Board so that the newly comprised MCC Board will act properly and in the best interest of stockholders,” NexPoint stated in its announcement.

Both MCC and NexPoint declined to comment.

NexPoint has not received a response to its announcement from MCC thus far, according to a source familiar with the situation.

This is the latest in the uphill ascent toward the merger, proposed last August, that has faced a shareholder revolt, dueling presentations and multiple proxy advisory firms weighing in on the vote, which is set for Friday.

NexPoint Advisors is a Highland Capital-affiliated investment advisory firm. Highland Capital is a global alternative asset management firm. Medley Management is a New York-based asset management firm that currently has more than $4.8 billion in assets under management.