☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 36-7730868 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employment Identification No.) |
201 N. Brand Blvd., Suite M Glendale, California | 91203 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☒ |
Emerging growth company ☒ |
PART I. FINANCIAL INFORMATION | |||
Item 1. | |||
1 | |||
2 | |||
3 | |||
4 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. OTHER INFORMATION | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. |
PART I. | FINANCIAL INFORMATION |
Item 1. | Financial Statements |
Woodbridge Liquidation Trust and Subsidiaries Consolidated Statements of Net Assets in Liquidation As of |
(Unaudited, $ In Thousands) |
12/31/2021 | 6/30/2021 | 3/31/2022 | 6/30/2021 | |||||||||||||
Assets | ||||||||||||||||
Real estate assets held for sale, net (Note 3) | ||||||||||||||||
Single-family homes | $ | 82,674 | $ | 137,945 | $ | 92,544 | $ | 137,945 | ||||||||
Other real estate assets | 2,734 | 2,910 | 1,998 | 2,910 | ||||||||||||
Subtotal | 85,408 | 140,855 | 94,542 | 140,855 | ||||||||||||
Cash and cash equivalents | 53,992 | 45,369 | 34,393 | 45,369 | ||||||||||||
Restricted cash (Note 4) | 9,124 | 8,273 | 9,098 | 8,273 | ||||||||||||
Other assets (Note 5) | 30,822 | 5,473 | 5,731 | 5,473 | ||||||||||||
Total assets | $ | 179,346 | $ | 199,970 | $ | 143,764 | $ | 199,970 | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 1,287 | $ | 160 | $ | 1,366 | $ | 160 | ||||||||
Distributions payable | 5,168 | 4,687 | 5,031 | 4,687 | ||||||||||||
Accrued liquidation costs (Note 6) | 45,386 | 65,583 | 41,105 | 65,583 | ||||||||||||
Total liabilities | $ | 51,841 | $ | 70,430 | $ | 47,502 | $ | 70,430 | ||||||||
Commitments and Contingencies (Note 14) | 0 | 0 | 0 | 0 | ||||||||||||
Net Assets in Liquidation | ||||||||||||||||
Restricted for Qualifying Victims (Note 7) | $ | 3,203 | $ | 3,167 | $ | 3,203 | $ | 3,167 | ||||||||
All Interestholders | 124,302 | 126,373 | 93,059 | 126,373 | ||||||||||||
Total net assets in liquidation | $ | 127,505 | $ | 129,540 | $ | 96,262 | $ | 129,540 |
PART I. | FINANCIAL INFORMATION (CONTINUED) |
Item 1. | Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Consolidated Statements of Changes in Net Assets in Liquidation For the Three Months Ended |
(Unaudited, $ in Thousands) |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | |||||||||||||||||||||||||||||||||||||
Net Assets in Liquidation as of beginning of period | $ | 3,167 | $ | 131,376 | $ | 134,543 | $ | 0 | $ | 239,723 | $ | 239,723 | $ | 3,203 | $ | 124,302 | $ | 127,505 | $ | 0 | $ | 210,476 | $ | 210,476 | ||||||||||||||||||||||||
Change in assets and liabilities (Note 8): | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted for Qualifying Victims - | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 36 | 0 | 36 | 0 | 0 | 0 | 0 | 0 | 0 | 3,459 | 0 | 3,459 | ||||||||||||||||||||||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 0 | 32,752 | 32,752 | 0 | 472 | 472 | 0 | 8,266 | 8,266 | 0 | 1,974 | 1,974 | ||||||||||||||||||||||||||||||||||||
Distributions (declared) reversed, net | 0 | (39,826 | ) | (39,826 | ) | 0 | (29,719 | ) | (29,719 | ) | 0 | (39,509 | ) | (39,509 | ) | 0 | (49,958 | ) | (49,958 | ) | ||||||||||||||||||||||||||||
Net change in assets and liabilities | 0 | (7,074 | ) | (7,074 | ) | 0 | (29,247 | ) | (29,247 | ) | 0 | (31,243 | ) | (31,243 | ) | 0 | (47,984 | ) | (47,984 | ) | ||||||||||||||||||||||||||||
Net Assets in Liquidation as of end of period | $ | 3,203 | $ | 124,302 | $ | 127,505 | $ | 0 | $ | 210,476 | $ | 210,476 | $ | 3,203 | $ | 93,059 | $ | 96,262 | $ | 3,459 | $ | 162,492 | $ | 165,951 |
PART I. | FINANCIAL INFORMATION (CONTINUED) |
Item 1. | Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Consolidated Statements of Changes in Net Assets in Liquidation For the |
(Unaudited, $ in Thousands) |
Six Months Ended December 31, 2021 | Six Months Ended December 31, 2020 | Nine Months Ended March 31, 2022 | Nine Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | Restricted For Qualifying Victims | All Interestholders | Total | |||||||||||||||||||||||||||||||||||||
Net Assets in Liquidation as of beginning of period | $ | 3,167 | $ | 126,373 | $ | 129,540 | $ | 0 | $ | 264,517 | $ | 264,517 | $ | 3,167 | $ | 126,373 | $ | 129,540 | $ | 0 | $ | 264,517 | $ | 264,517 | ||||||||||||||||||||||||
Change in assets and liabilities (Note 8): | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted for Qualifying Victims - | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 36 | 0 | 36 | 0 | 0 | 0 | 36 | 0 | 36 | 3,459 | 0 | 3,459 | ||||||||||||||||||||||||||||||||||||
All Interestholders : | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 0 | 37,657 | 37,657 | 0 | 5,555 | 5,555 | 0 | 45,922 | 45,922 | 0 | 7,529 | 7,529 | ||||||||||||||||||||||||||||||||||||
Distributions (declared) reversed, net | 0 | (39,728 | ) | (39,728 | ) | 0 | (59,596 | ) | (59,596 | ) | 0 | (79,236 | ) | (79,236 | ) | 0 | (109,554 | ) | (109,554 | ) | ||||||||||||||||||||||||||||
Net change in assets and liabilities | 0 | (2,071 | ) | (2,071 | ) | 0 | (54,041 | ) | (54,041 | ) | 0 | (33,314 | ) | (33,314 | ) | 0 | (102,025 | ) | (102,025 | ) | ||||||||||||||||||||||||||||
Net Assets in Liquidation as of end of period | $ | 3,203 | $ | 124,302 | $ | 127,505 | $ | 0 | $ | 210,476 | $ | 210,476 | $ | 3,203 | $ | 93,059 | $ | 96,262 | $ | 3,459 | $ | 162,492 | $ | 165,951 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
1) | Formation and Description of Business |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
2) | Summary of Significant Accounting Policies |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
December 31, 2021 | June 30, 2021 | |||||||||||||||||||||||||||||||
Number of Assets | Gross Value | Closing and Other Costs | Net Value | Number of Assets | Gross Value | Closing and Other Costs | Net Value | |||||||||||||||||||||||||
Single-family homes | 3 | $ | 87,951 | $ | (5,277 | ) | $ | 82,674 | 7 | $ | 146,750 | $ | (8,805 | ) | $ | 137,945 | ||||||||||||||||
Other real estate assets: | ||||||||||||||||||||||||||||||||
Secured loans | 3 | 1,722 | (40 | ) | 1,682 | 4 | 1,945 | (87 | ) | 1,858 | ||||||||||||||||||||||
Other properties | 2 | 1,107 | (55 | ) | 1,052 | 2 | 1,107 | (55 | ) | 1,052 | ||||||||||||||||||||||
Subtotal | 5 | 2,829 | (95 | ) | 2,734 | 6 | 3,052 | (142 | ) | 2,910 | ||||||||||||||||||||||
Total | 8 | $ | 90,780 | $ | (5,372 | ) | $ | 85,408 | 13 | $ | 149,802 | $ | (8,947 | ) | $ | 140,855 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
3) | Real Estate Assets Held for Sale |
March 31, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||
Number of Assets | Gross Value | Closing and Other Costs | Net Value | Number of Assets | Gross Value | Closing and Other Costs | Net Value | |||||||||||||||||||||||||
Single-family homes | 3 | $ | 98,451 | $ | (5,907 | ) | $ | 92,544 | 7 | $ | 146,750 | $ | (8,805 | ) | $ | 137,945 | ||||||||||||||||
Other real estate assets: | ||||||||||||||||||||||||||||||||
Secured loans | 2 | 986 | (40 | ) | 946 | 4 | 1,945 | (87 | ) | 1,858 | ||||||||||||||||||||||
Other properties | 2 | 1,107 | (55 | ) | 1,052 | 2 | 1,107 | (55 | ) | 1,052 | ||||||||||||||||||||||
Subtotal | 4 | 2,093 | (95 | ) | 1,998 | 6 | 3,052 | (142 | ) | 2,910 | ||||||||||||||||||||||
Total | 7 | $ | 100,544 | $ | (6,002 | ) | $ | 94,542 | 13 | $ | 149,802 | $ | (8,947 | ) | $ | 140,855 |
December 31, 2021 | June 30, 2021 | |||||||
Distributions restricted by the Company related to unresolved claims, distributions for recently allowed claims, uncashed distribution checks, distributions withheld due to pending avoidance actions and distributions that the Trust is waiting for further beneficiary information | $ | 5,168 | $ | 4,687 | ||||
Forfeited Assets (Note 7) | 2,206 | 1,836 | ||||||
Interest reserve (Note 9) | 1,750 | 1,750 | ||||||
Total restricted cash | $ | 9,124 | $ | 8,273 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
December 31, 2021 | June 30, 2021 | |||||||
Comerica settlement receivable, net (Note 13) | $ | 24,815 | $ | 0 | ||||
Escrow receivables (a) | 3,560 | 2,500 | ||||||
Forfeited Assets (Note 7) | 1,179 | 1,549 | ||||||
Settlement installment receivables, net (b) | 857 | 1,014 | ||||||
Other | 411 | 410 | ||||||
Total other assets | $ | 30,822 | $ | 5,473 |
March 31, 2022 | June 30, 2021 | |||||||
Distributions restricted by the Company related to unresolved claims, distributions for recently allowed claims, uncashed distribution checks, distributions withheld due to pending avoidance actions and distributions that the Trust is waiting for further beneficiary information | $ | 5,031 | $ | 4,687 | ||||
Forfeited Assets (Note 7) | 2,317 | 1,836 | ||||||
Interest reserve (Note 9) | 1,750 | 1,750 | ||||||
Total restricted cash | $ | 9,098 | $ | 8,273 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
5) | Other Assets |
March 31, 2022 | June 30, 2021 | |||||||
Escrow receivables (a) | $ | 3,560 | $ | 2,500 | ||||
Forfeited Assets (Note 7) | 1,059 | 1,549 | ||||||
Settlement installment receivables, net (b) | 712 | 1,014 | ||||||
Other | 400 | 410 | ||||||
Total other assets | $ | 5,731 | $ | 5,473 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
6) | Accrued Liquidation Costs |
December 31, 2021 | June 30, 2021 | March 31, 2022 | June 30, 2021 | |||||||||||||
Development costs: | ||||||||||||||||
Construction costs | $ | 13,335 | $ | 23,480 | $ | 11,564 | $ | 23,480 | ||||||||
Construction warranty | 2,870 | 2,870 | 2,870 | 2,870 | ||||||||||||
Indirect costs | 399 | 712 | 498 | 712 | ||||||||||||
Bond refunds | (752 | ) | (1,134 | ) | (699 | ) | (1,134 | ) | ||||||||
Total development costs | 15,852 | 25,928 | 14,233 | 25,928 | ||||||||||||
Holding costs: | ||||||||||||||||
Property tax | 1,221 | 1,901 | 836 | 1,901 | ||||||||||||
Insurance | 585 | 1,291 | 462 | 1,291 | ||||||||||||
Maintenance, utilities and other | 609 | 1,000 | 479 | 1,000 | ||||||||||||
Total holding costs | 2,415 | 4,192 | 1,777 | 4,192 | ||||||||||||
General and administrative costs: | ||||||||||||||||
Legal and other professional fees | 12,507 | 17,697 | 10,475 | 17,697 | ||||||||||||
Payroll and payroll-related | 8,109 | 10,432 | 8,546 | 10,432 | ||||||||||||
State, local and other taxes | 2,188 | 2,217 | ||||||||||||||
Directors and officers insurance | 2,576 | 2,576 | 2,024 | 2,576 | ||||||||||||
State, local and other taxes | 2,201 | 2,217 | ||||||||||||||
Board fees and expenses | 868 | 1,558 | 698 | 1,558 | ||||||||||||
Other | 858 | 983 | 1,164 | 983 | ||||||||||||
Total general and administrative costs | 27,119 | 35,463 | 25,095 | 35,463 | ||||||||||||
Total accrued liquidation costs | $ | 45,386 | $ | 65,583 | $ | 41,105 | $ | 65,583 |
7) | Forfeited Assets - Restricted for Qualifying Victims |
December 31, 2021 | June 30, 2021 | |||||||
Restricted cash (Note 4) | $ | 2,206 | $ | 1,836 | ||||
Other assets (Note 5) | 1,179 | 1,549 | ||||||
Accrued liquidation costs | (182 | ) | (218 | ) | ||||
Net assets in liquidation - restricted for Qualifying Victims | $ | 3,203 | $ | 3,167 |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 389 | 0 | 389 | |||||||||
Other assets | (406 | ) | 36 | (370 | ) | |||||||
Total assets | $ | (17 | ) | $ | 36 | $ | 19 | |||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | ||||||
Accrued liquidation costs | (17 | ) | 0 | (17 | ) | |||||||
Total liabilities | $ | (17 | ) | $ | 0 | $ | (17 | ) | ||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 36 | $ | 36 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
March 31, 2022 | June 30, 2021 | |||||||
Restricted cash (Note 4) | $ | 2,317 | $ | 1,836 | ||||
Other assets (Note 5) | 1,059 | 1,549 | ||||||
Accrued liquidation costs | (173 | ) | (218 | ) | ||||
Net assets in liquidation - restricted for Qualifying Victims | $ | 3,203 | $ | 3,167 |
8) | Net Change In Assets and Liabilities |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 370 | 0 | 370 | |||||||||
Other assets | (406 | ) | 36 | (370 | ) | |||||||
Total assets | $ | (36 | ) | $ | 36 | $ | 0 | |||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | ||||||
Accrued liquidation costs | (36 | ) | 0 | (36 | ) | |||||||
Total liabilities | $ | (36 | ) | $ | 0 | $ | (36 | ) | ||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 36 | $ | 36 |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 111 | 0 | 111 | |||||||||
Other assets | (120 | ) | 0 | (120 | ) | |||||||
Total assets | $ | (9 | ) | $ | 0 | $ | (9 | ) | ||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | ||||||
Accrued liquidation costs | (9 | ) | 0 | (9 | ) | |||||||
Total liabilities | $ | (9 | ) | $ | 0 | $ | (9 | ) | ||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 0 | $ | 0 |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | (21,247 | ) | $ | 5,289 | $ | (15,958 | ) | ||||
Cash and cash equivalents | 13,547 | 0 | 13,547 | |||||||||
Restricted cash | 0 | 0 | 0 | |||||||||
Other assets | (307 | ) | 25,902 | 25,595 | ||||||||
Total assets | $ | (8,007 | ) | $ | 31,191 | $ | 23,184 | |||||
Accounts payable and accrued liabilities | $ | (184 | ) | $ | 1,262 | $ | 1,078 | |||||
Accrued liquidation costs | (8,489 | ) | (2,157 | ) | (10,646 | ) | ||||||
Total liabilities | $ | (8,673 | ) | $ | (895 | ) | $ | (9,568 | ) | |||
Change in carrying value of assets and liabilities, net | $ | 666 | $ | 32,086 | $ | 32,752 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
Distributions declared | $ | (40,017 | ) | |
Distributions reversed | 191 | |||
Distributions (declared) reversed, net | $ | (39,826 | ) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (87,675 | ) | $ | (1,277 | ) | $ | (88,952 | ) | $ | 0 | $ | 0 | $ | 0 | |||||||||
Cash and cash equivalents | 72,508 | 0 | 72,508 | 0 | 0 | 0 | ||||||||||||||||||
Restricted cash | 578 | 0 | 578 | 28 | 0 | 28 | ||||||||||||||||||
Other assets | (1,293 | ) | 248 | (1,045 | ) | 0 | 3,442 | 3,442 | ||||||||||||||||
Total assets | $ | (15,882 | ) | $ | (1,029 | ) | $ | (16,911 | ) | $ | 28 | $ | 3,442 | $ | 3,470 | |||||||||
Accounts payable and accrued liabilities | $ | (493 | ) | $ | 31 | $ | (462 | ) | $ | 0 | $ | 11 | $ | 11 | ||||||||||
Accrued liquidation costs | (18,067 | ) | 1,146 | (16,921 | ) | 0 | 0 | 0 | ||||||||||||||||
Total liabilities | $ | (18,560 | ) | $ | 1,177 | $ | (17,383 | ) | $ | 0 | $ | 11 | $ | 11 | ||||||||||
Change in carrying value of assets and liabilities, net | $ | 2,678 | $ | (2,206 | ) | $ | 472 | $ | 28 | $ | 3,431 | $ | 3,459 |
Distributions declared | $ | (29,957 | ) | |
Distributions reversed | 238 | |||
Distributions (declared) reversed, net | $ | (29,719 | ) |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 481 | 0 | 481 | |||||||||
Other assets | (526 | ) | 36 | (490 | ) | |||||||
Total assets | $ | (45 | ) | $ | 36 | $ | (9 | ) | ||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | ||||||
Accrued liquidation costs | (45 | ) | 0 | (45 | ) | |||||||
Total liabilities | $ | (45 | ) | $ | 0 | $ | (45 | ) | ||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 36 | $ | 36 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||
Restricted cash | 28 | 0 | 28 | |||||||||
Other assets | 0 | 3,442 | 3,442 | |||||||||
Total assets | $ | 28 | $ | 3,442 | $ | 3,470 | ||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 11 | $ | 11 | ||||||
Accrued liquidation costs | 0 | 0 | 0 | |||||||||
Total liabilities | $ | 0 | $ | 11 | $ | 11 | ||||||
Change in carrying value of assets and liabilities, net | $ | 28 | $ | 3,431 | $ | 3,459 |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | (63,701 | ) | $ | 8,254 | $ | (55,447 | ) | ||||
Cash and cash equivalents | 48,350 | 0 | 48,350 | |||||||||
Restricted cash | 0 | 0 | 0 | |||||||||
Other assets | (1,007 | ) | 26,725 | 25,718 | ||||||||
Total assets | $ | (16,358 | ) | $ | 34,979 | $ | 18,621 | |||||
Accounts payable and accrued liabilities | $ | (184 | ) | $ | 1,311 | $ | 1,127 | |||||
Accrued liquidation costs | (17,212 | ) | (2,951 | ) | (20,163 | ) | ||||||
Total liabilities | $ | (17,396 | ) | $ | (1,640 | ) | $ | (19,036 | ) | |||
Change in carrying value of assets and liabilities, net | $ | 1,038 | $ | 36,619 | $ | 37,657 |
Distributions declared | $ | (40,017 | ) | |
Distributions reversed | 289 | |||
Distributions (declared) reversed, net | $ | (39,728 | ) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (121,167 | ) | $ | (13,194 | ) | $ | (134,361 | ) | $ | (736 | ) | $ | 9,870 | $ | 9,134 | ||||||||
Cash and cash equivalents | 98,849 | 0 | 98,849 | 19,910 | 0 | 19,910 | ||||||||||||||||||
Restricted cash | 1,266 | 0 | 1,266 | 0 | 0 | 0 | ||||||||||||||||||
Other assets | (1,877 | ) | 329 | (1,548 | ) | (24,991 | ) | 20 | (24,971 | ) | ||||||||||||||
Total assets | $ | (22,929 | ) | $ | (12,865 | ) | $ | (35,794 | ) | $ | (5,817 | ) | $ | 9,890 | $ | 4,073 | ||||||||
Accounts payable and accrued liabilities | $ | (989 | ) | $ | 393 | $ | (596 | ) | $ | 0 | $ | 79 | $ | 79 | ||||||||||
Accrued liquidation costs | (29,998 | ) | (10,755 | ) | (40,753 | ) | (6,500 | ) | 2,228 | (4,272 | ) | |||||||||||||
Total liabilities | $ | (30,987 | ) | $ | (10,362 | ) | $ | (41,349 | ) | $ | (6,500 | ) | $ | 2,307 | $ | (4,193 | ) | |||||||
Change in carrying value of assets and liabilities, net | $ | 8,058 | $ | (2,503 | ) | $ | 5,555 | $ | 683 | $ | 7,583 | $ | 8,266 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
Distributions declared | $ | (59,927 | ) | $ | (39,981 | ) | ||
Distributions reversed | 331 | 472 | ||||||
Distributions (declared) reversed, net | $ | (59,596 | ) | $ | (39,509 | ) |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | (9 | ) | $ | 0 | $ | (9 | ) | ||||
Cash and cash equivalents | (11,199 | ) | 0 | (11,199 | ) | |||||||
Restricted cash | 1,262 | 0 | 1,262 | |||||||||
Other assets | (287 | ) | (1,091 | ) | (1,378 | ) | ||||||
Total assets | $ | (10,233 | ) | $ | (1,091 | ) | $ | (11,324 | ) | |||
Accounts payable and accrued liabilities | $ | 42 | $ | 30 | $ | 72 | ||||||
Accrued liquidation costs | (11,238 | ) | (2,132 | ) | (13,370 | ) | ||||||
Total liabilities | $ | (11,196 | ) | $ | (2,102 | ) | $ | (13,298 | ) | |||
Change in carrying value of assets and liabilities, net | $ | 963 | $ | 1,011 | $ | 1,974 |
Distributions declared | $ | (50,005 | ) | |
Distributions reversed | 47 | |||
Distributions (declared) reversed, net | $ | (49,958 | ) |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | (64,437 | ) | $ | 18,124 | $ | (46,313 | ) | ||||
Cash and cash equivalents | 68,260 | 0 | 68,260 | |||||||||
Restricted cash | 0 | 0 | 0 | |||||||||
Other assets | (25,998 | ) | 26,745 | 747 | ||||||||
Total assets | $ | (22,175 | ) | $ | 44,869 | $ | 22,694 | |||||
Accounts payable and accrued liabilities | $ | (184 | ) | $ | 1,390 | $ | 1,206 | |||||
Accrued liquidation costs | (23,712 | ) | (722 | ) | (24,434 | ) | ||||||
Total liabilities | $ | (23,896 | ) | $ | 668 | $ | (23,228 | ) | ||||
Change in carrying value of assets and liabilities, net | $ | 1,721 | $ | 44,201 | $ | 45,922 |
Distributions declared | $ | (79,997 | ) | |
Distributions reversed | 761 | |||
Distributions (declared) reversed, net | $ | (79,236 | ) |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | |||||||||||
Activities | ment | Total | ||||||||||
Real estate assets held for sale, net | $ | (121,186 | ) | $ | (13,184 | ) | $ | (134,370 | ) | |||
Cash and cash equivalents | 87,650 | 0 | 87,650 | |||||||||
Restricted cash | 2,528 | 0 | 2,528 | |||||||||
Other assets | (2,164 | ) | (762 | ) | (2,926 | ) | ||||||
Total assets | $ | (33,172 | ) | $ | (13,946 | ) | $ | (47,118 | ) | |||
Accounts payable and accrued liabilities | $ | (947 | ) | $ | 423 | $ | (524 | ) | ||||
Accrued liquidation costs | (41,236 | ) | (12,887 | ) | (54,123 | ) | ||||||
Total liabilities | $ | (42,183 | ) | $ | (12,464 | ) | $ | (54,647 | ) | |||
Change in carrying value of assets and liabilities, net | $ | 9,011 | $ | (1,482 | ) | $ | 7,529 |
Distributions declared | $ | (109,932 | ) | |
Distributions reversed | 378 | |||
Distributions (declared) reversed, net | $ | (109,554 | ) |
9) | Credit Agreement |
For the Six Months Ended December 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
Liquidation Trust Interests | Class A | Class B | Class A | Class B | ||||||||||||
Outstanding at beginning of period | 11,512,855 | 675,784 | 11,518,232 | 675,558 | ||||||||||||
Allowed claims | 302 | 0 | 7,388 | 1,133 | ||||||||||||
5% enhancement for certain allowed claims | 0 | 0 | 166 | 56 | ||||||||||||
Settlement of claims by cancelling Liquidation | ||||||||||||||||
Trust Interests | (1,392 | ) | (167 | ) | (9,742 | ) | (435 | ) | ||||||||
Outstanding at end of period | 11,511,765 | 675,617 | 11,516,044 | 676,312 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
10) | Liquidation Trust Interests |
For the Nine Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Liquidation Trust Interests | Class A | Class B | Class A | Class B | ||||||||||||
Outstanding at beginning of period | 11,512,855 | 675,784 | 11,518,232 | 675,558 | ||||||||||||
Allowed claims | 4,976 | 0 | 10,367 | 1,133 | ||||||||||||
5% enhancement for certain allowed claims | 0 | 0 | 182 | 56 | ||||||||||||
Settlement of claims by cancelling Liquidation | ||||||||||||||||
Trust Interests | (1,392 | ) | (167 | ) | (15,121 | ) | (435 | ) | ||||||||
Outstanding at end of period | 11,516,439 | 675,617 | 11,513,660 | 676,312 |
For the Six Months Ended December 31, | For the Nine Months Ended March 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||
Liquidation Trust Interests | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||
Reserved for unresolved claims at beginning of period | 124,609 | 5,011 | 193,559 | 7,118 | 124,609 | 5,011 | 193,559 | 7,118 | ||||||||||||||||||||||||
Allowed claims | (302 | ) | 0 | (7,388 | ) | (1,133 | ) | (4,976 | ) | 0 | (10,367 | ) | (1,133 | ) | ||||||||||||||||||
5% enhancement for certain allowed claims | 0 | 0 | (16 | ) | 0 | 0 | 0 | (32 | ) | 0 | ||||||||||||||||||||||
Disallowed claims | (10,547 | ) | 0 | (18,682 | ) | (974 | ) | (28,840 | ) | (4,678) | (44,372 | ) | (974 | ) | ||||||||||||||||||
Reserved for unresolved claims at end of period | 113,760 | 5,011 | 167,473 | 5,011 | 90,793 | 333 | 138,788 | 5,011 |
11) | Distributions |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and Nine Months Ended March 31, 2022 and 2021 (Unaudited) |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
12) | Related Party Transactions |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
13) | Causes of Action |
For the Three Months Ended December 31, | For the Six Months Ended December 31, | For the Three Months Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Comerica Bank | $ | 24,815 | $ | 0 | $ | 24,815 | $ | 0 | $ | 0 | $ | 0 | $ | 24,815 | $ | 0 | ||||||||||||||||
Other settlement recoveries | 429 | 585 | 1,400 | 7,165 | 468 | 1,278 | 1,868 | 8,443 | ||||||||||||||||||||||||
Total | $ | 25,244 | $ | 585 | $ | 26,215 | $ | 7,165 | $ | 468 | $ | 1,278 | $ | 26,683 | $ | 8,443 |
Trust's net portion | $ | 24,815 | ||
Payable to non-contributing claimants | 15,600 | |||
Payable for approved legal fees and litigation costs | 13,960 | |||
Payable for incentive awards | 100 | |||
Payable for administrative costs relating to non-contributing claimants | 25 | |||
Total | $ | 54,500 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
Class Payment | $ | 54,200 | ||
Less: | ||||
Court-approved legal fees | (13,550 | ) | ||
Court-approved litigation costs | (410 | ) | ||
Net Class Consideration | 40,240 | |||
Less- amount payable to Non-Contributing Claimants (approximately 39.1%), net of approximately $125 of court-approved notice and administrative costs and incentive awards for class representatives | (15,725 | ) | ||
Trust’s portion of Net Class Consideration | 24,515 | |||
FT Payment payable to the Trust | 300 | |||
Trust receivable at December 31, 2021 | $ | 24,815 |
14) | Commitments and Contingencies |
15) | Subsequent Events |
Liquidation Trust Interests | Class A | Class B | ||||||
Outstanding at January 1, 2022 | 11,511,765 | 675,617 | ||||||
Allowed claims | 4,674 | 0 | ||||||
Settlement of claims by cancelling | ||||||||
Liquidation Trust Interests | 0 | 0 | ||||||
Outstanding at February 10, 2022 | 11,516,439 | 675,617 |
PART I. FINANCIAL INFORMATION (CONTINUED) |
Item 1. Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements For the Three and (Unaudited) |
Liquidation Trust Interests | Class A | Class B | ||||||
Outstanding at January 1, 2022 | 113,760 | 5,011 | ||||||
Allowed claims | (4,674) | 0 | ||||||
Disallowed claims | (2,852 | ) | (685 | ) | ||||
Outstanding at February 10, 2022 | 106,234 | 4,326 |
Class of Interest | Number Outstanding | |||
Class A Liquidation Trust Interests | 11,516,439 | |||
Class B Liquidation Trust Interests | 675,617 |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Net assets in liquidation as of December 31, 2021 | $ | 3,203 | $ | 124,302 | $ | 127,505 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying | ||||||||||||
value of assets and liabilities, net | - | - | - | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 8,266 | 8,266 | |||||||||
Distributions (declared) reversed, net | - | (39,509 | ) | (39,509 | ) | |||||||
Net change in assets and liabilities | - | (31,243 | ) | (31,243 | ) | |||||||
Net assets in liquidation, as of March 31, 2022 | $ | 3,203 | $ | 93,059 | $ | 96,262 |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Other settlement recoveries recognized, net (1) | $ | - | $ | 445 | $ | 445 | ||||||
Remeasurement of assets and liabilities, net | - | 7,627 | 7,627 | |||||||||
Other | - | 194 | 194 | |||||||||
Change in carrying value of assets and liabilities, net | $ | - | $ | 8,266 | $ | 8,266 |
(1) | Net of the 5% payable to the Liquidation Trustee of approximately $22 ($ in thousands). |
o | Declared a distribution of $3.44 per Class A Interest, which totaled approximately $39.98 million. |
o | Sold the rest of the gold Forfeited Assets for net proceeds of approximately $0.12 million. |
o | Completed construction of one single-family home (642 St. Cloud). |
o | Settled one secured loan for net proceeds of approximately $0.72 million. |
o | Signed agreements to settle other Causes of Action for payment to the Trust of approximately $0.47 million. |
o | Paid construction costs of approximately $1.80 million relating to single-family homes under development. |
o | Paid holding costs of approximately $0.66 million. |
o | Paid general and administrative costs of approximately $4.04 million, including approximately $0.17 million of board member fees and expenses, approximately $1.84 million of payroll and other general and administrative costs and approximately $2.03 million of professional fees. |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Net assets in liquidation as of September 30, 2021 | $ | 3,167 | $ | 131,376 | $ | 134,543 | ||||||||||||||||||
Net assets in liquidation as of December 31, 2021 | $ | - | $ | 210,476 | $ | 210,476 | ||||||||||||||||||
Change in assets and liabilities: | ||||||||||||||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 36 | - | 36 | 3,459 | - | 3,459 | ||||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | - | 32,752 | 32,752 | - | 1,974 | 1,974 | ||||||||||||||||||
Distributions (declared) reversed, net | - | (39,826 | ) | (39,826 | ) | - | (49,958 | ) | (49,958 | ) | ||||||||||||||
Net change in assets and liabilities | - | (7,074 | ) | (7,074 | ) | - | (47,984 | ) | (47,984 | ) | ||||||||||||||
Net assets in liquidation, as of December 31, 2021 | $ | 3,203 | $ | 124,302 | $ | 127,505 | ||||||||||||||||||
Net assets in liquidation, as of March 31, 2021 | $ | 3,459 | $ | 162,492 | $ | 165,951 |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Recognition of Forfeited Assets | $ | 3,459 | $ | - | $ | 3,459 | ||||||
Remeasurement of assets and liabilities, net | - | 2,473 | 2,473 | |||||||||
Other settlement recoveries recognized, net (1) | - | 1,326 | 1,326 | |||||||||
Carrying value in excess of sales proceeds | - | (1,900 | ) | (1,900 | ) | |||||||
Other | - | 75 | 75 | |||||||||
Change in carrying value of assets and liabilities, net | $ | 3,459 | $ | 1,974 | $ | 5,433 |
(1) | Net of the 5% payable to the Liquidation Trustee of approximately $72 ($ in thousands). |
o | Declared a distribution of $4.28 per Class A Interest, which totaled approximately $50.01 million. |
o | Signed agreements to settle other Causes of Action for payment to the Trust of approximately $1.28 million. |
o | Recorded Forfeited Assets with an estimated net realizable value of approximately $3.46 million. |
Paid construction costs of |
o | Paid holding costs of approximately $0.77 million. |
o | Paid general and administrative costs of approximately $4.29 million, including approximately $0.21 million of board member fees and expenses, approximately $1.90 million of payroll and other general and administrative costs and approximately $2.18 million of professional fees. |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Net assets in liquidation as of June 30, 2021 | $ | 3,167 | $ | 126,373 | $ | 129,540 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 36 | - | 36 | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 45,922 | 45,922 | |||||||||
Distributions (declared) reversed, net | - | (79,236 | ) | (79,236 | ) | |||||||
Net change in assets and liabilities | - | (33,314 | ) | (33,314 | ) | |||||||
Net assets in liquidation, as of March 31, 2022 | $ | 3,203 | $ | 93,059 | $ | 96,262 |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Causes of Action, net (1): | ||||||||||||||||||||||||
Causes of Action, net(1) : | ||||||||||||||||||||||||
Comerica Bank | $ | - | $ | 23,574 | 23,574 | $ | - | $ | 23,575 | 23,575 | ||||||||||||||
Other settlement agreements | - | 408 | 408 | - | 1,777 | 1,777 | ||||||||||||||||||
Sales proceeds in excess of carrying value | - | 6,460 | 6,460 | |||||||||||||||||||||
Remeasurement of assets and liabilities, net | 36 | 4,989 | 5,025 | 36 | 13,428 | 13,464 | ||||||||||||||||||
Sales proceeds in excess of carrying value | - | 3,388 | 3,388 | |||||||||||||||||||||
Other | - | 393 | 393 | - | 682 | 682 | ||||||||||||||||||
Change in carrying value of assets and liabilities, net | $ | 36 | $ | 32,752 | $ | 32,788 | $ | 36 | $ | 45,922 | $ | 45,958 |
(1) | Net of the 5% payable to the Liquidation Trustee of approximately $1,241 for Comerica Bank and |
Declared two distributions, both of $3.44 per Class A Interest, which totaled approximately $80.00 million. |
o | Sold the wine and the gold Forfeited Assets for net proceeds of approximately $0.49 million. |
o | Completed construction of one single-family home (642 St. Cloud). |
o | Sold four single-family homes and settled two secured loans for net proceeds of approximately $64.40 million. One of the single-family homes was under construction. |
o | Recorded approximately $24.81 million from the settlement of the two pending actions against Comerica Bank, the California Class Action and the Delaware Adversary Action. |
o | Signed agreements to settle other Causes of Action for payment to the Trust of approximately $1.87 million. |
Paid construction costs of |
o | Paid holding costs of approximately $1.90 million. |
o | Paid general and administrative costs of approximately $12.56 million, including approximately $0.56 million of board member fees and expenses, approximately $4.68 million of payroll and other general and administrative costs and approximately $7.32 million of professional fees. |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Net assets in liquidation as of June 30, 2020 | $ | - | $ | 264,517 | $ | 264,517 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 3,459 | - | 3,459 | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 7,529 | 7,529 | |||||||||
Distributions (declared) reversed, net | - | (109,554 | ) | (109,554 | ) | |||||||
Net change in assets and liabilities | - | (102,025 | ) | (102,025 | ) | |||||||
Net assets in liquidation, as of March 31, 2021 | $ | 3,459 | $ | 162,492 | $ | 165,951 |
Restricted for | All | |||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||
Net assets in liquidation as of September 30, 2020 | $ | - | $ | 239,723 | $ | 239,723 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | - | - | - | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 472 | 472 | |||||||||
Distributions (declared) reversed, net | - | (29,719 | ) | (29,719 | ) | |||||||
Net change in assets and liabilities | - | (29,247 | ) | (29,247 | ) | |||||||
Net assets in liquidation, as of December 31, 2020 | $ | - | $ | 210,476 | $ | 210,476 |
Restricted for | All | |||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||
Remeasurement of assets and liabilities, net | $ | - | $ | 1,147 | $ | 1,147 | ||||||
Settlement agreements, net (1) | - | 530 | 530 | |||||||||
Carrying value in excess of sales proceeds | - | (1,277 | ) | (1,277 | ) | |||||||
Other | - | 72 | 72 | |||||||||
Change in carrying value of assets and liabilities, net | $ | - | $ | 472 | $ | 472 |
Restricted for | All | |||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||
Net assets in liquidation as of June 30, 2021 | $ | 3,167 | $ | 126,373 | $ | 129,540 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 36 | - | 36 | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 37,657 | 37,657 | |||||||||
Distributions (declared) reversed, net | - | (39,728 | ) | (39,728 | ) | |||||||
Net change in assets and liabilities | - | (2,071 | ) | (2,071 | ) | |||||||
Net assets in liquidation, as of December 31, 2021 | $ | 3,203 | $ | 124,302 | $ | 127,505 |
Restricted for | All | |||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||
Causes of Action, net(1) : | ||||||||||||
Comerica Bank | $ | - | $ | 23,575 | 23,575 | |||||||
Other settlement agreements | - | 1,333 | 1,333 | |||||||||
Sales proceeds in excess of carrying value | - | 6,460 | 6,460 | |||||||||
Remeasurement of assets and liabilities, net | 36 | 5,801 | 5,837 | |||||||||
Other | - | 488 | 488 | |||||||||
Change in carrying value of assets and liabilities, net | $ | 36 | $ | 37,657 | $ | 37,693 |
Restricted for | All | |||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||
Net assets in liquidation as of June 30, 2020 | $ | - | $ | 264,517 | $ | 264,517 | ||||||
Change in assets and liabilities: | ||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | - | - | - | |||||||||
All Interestholders: | ||||||||||||
Change in carrying value of assets and liabilities, net | - | 5,555 | 5,555 | |||||||||
Distributions (declared) reversed, net | - | (59,596 | ) | (59,596 | ) | |||||||
Net change in assets and liabilities | - | (54,041 | ) | (54,041 | ) | |||||||
Net assets in liquidation, as of December 31, 2020 | $ | - | $ | 210,476 | $ | 210,476 |
Restricted for | All | Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||||||||||||
Qualifying Victims | Interestholders | Total | ||||||||||||||||||||||
Settlement agreements, net (1) | $ | - | $ | 6,687 | $ | 6,687 | ||||||||||||||||||
Recognition of Forfeited Assets | $ | 3,459 | $ | - | $ | 3,459 | ||||||||||||||||||
Settlement recoveries recognized, net (1) | - | 8,013 | 8,013 | |||||||||||||||||||||
Carrying value in excess of sales proceeds | - | (1,540 | ) | (1,540 | ) | - | (1,540 | ) | (1,540 | ) | ||||||||||||||
Remeasurement of assets and liabilities, net | - | 302 | 302 | - | 2,775 | 2,775 | ||||||||||||||||||
Adjustment to insurance claim receivable | - | (1,900 | ) | (1,900 | ) | |||||||||||||||||||
Other | - | 106 | 106 | $ | - | $ | 181 | $ | 181 | |||||||||||||||
Change in carrying value of assets and liabilities, net | $ | - | $ | 5,555 | $ | 5,555 | $ | 3,459 | $ | 7,529 | $ | 10,988 |
(1) | Net of the 5% payable to the Liquidation Trustee of approximately |
o | Declared three distributions, two each of $2.56 and one of $4.28 per Class A Interest, which totaled approximately $109.93 million. |
o | Sold five single-family home, two lots and eleven other properties for net proceeds of approximately $121.16 million. One of the single-family homes was under construction and the buyer assumed the remaining obligations to complete the construction of the property of approximately $11.25 million. |
o | Signed agreements to settle Causes of Action for payment to the Trust of approximately $8.44 million. |
o | Recorded Forfeited Assets with an estimated net realizable value of approximately $3.46 million. |
o | Paid construction costs of approximately $22.04 million relating to single-family homes under development. |
o | Paid holding costs of approximately $4.13 million. |
o | Paid general and administrative costs of approximately $14.39 million, including approximately $0.68 million of board member fees and expenses, approximately $6.35 million of payroll and other general and administrative costs and approximately $7.36 million of professional fees. |
Revolving Line of Credit: On June 19, 2020, two wholly-owned subsidiaries of the Wind-Down Entity entered into a $25.00 million LOC. On February 11, 2021, the LOC was amended. Two additional wholly owned subsidiaries of the Wind-Down Entity were joined to the LOC as co-borrowers and |
o | Sales of Real Estate Assets: The Wind-Down Entity and the Wind-Down Subsidiaries are in the process of developing, marketing and selling their real estate assets, all of which are held for sale. As of March 31, 2022, the Company owned a total of seven real estate assets with a gross carrying value of approximately $100.54 million. The majority of the gross carrying value is concentrated in the three single-family homes. Four single-family homes were under construction; two that are owned as of March 31, 2022, one that was sold in December 2021 and one that was sold in May 2021. During the three months ended March 31, 2022, the Company settled one secured loan for net proceeds of approximately $725,000. During the nine months ended March 31, 2022, the Company sold four single-family homes and settled two secured loans for net proceeds of approximately $64,405,000. It is unlikely that the net proceeds for the three or nine months ended March 31, 2022 will be indicative of future net proceeds, which are likely to be significantly lower. In addition, it may take longer to sell the properties than the Company has estimated. |
o | Recoveries: During the three and nine months ended March 31, 2022, the Company recognized approximately $0.47 million and $26.68 million, respectively, from the settlement of Causes of Action. The recoveries for the three and nine months ended March 31, 2022 include approximately $0 and $24.81 million from Comerica Bank. There can be no assurance that the amounts the Company recovers from settling Causes of Action in the future will be consistent with the amount recovered during the three and nine months ended March 31, 2022. |
During the Period from February 15, 2019 (inception) through December 31, 2021 ($ in Millions) | During the Period from February 15, 2019 (inception) through February 10, 2022 ($ in Millions) | Date Declared | $ per Class A Interest | During the Period from February 15, 2019 (inception) through March 31, 2022 ($ in Millions) | During the Period from February 15, 2019 (inception) through May 13, 2022 ($ in Millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Date Declared | $ per Class A Interest | Total Declared | Paid | Restricted Cash Account | Total Declared | Paid | Restricted Cash Account | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Date Declared | $ per Class A Interest | Total Declared | Paid | Restricted Cash Account | Total Declared | Paid | Restricted Cash Account | ||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Declared | Distributions Declared | Distributions Declared | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First | 3/15/2019 | $ | 3.75 | $ | 44.70 | $ | 42.32 | $ | 2.38 | $ | 44.70 | $ | 42.32 | 2.38 | 3/15/2019 | $ | 3.75 | $ | 44.70 | $ | 42.32 | $ | 2.38 | $ | 44.70 | $ | 42.32 | $ | 2.38 | |||||||||||||||||||||||||||||
Second | 1/2/2020 | 4.50 | 53.43 | 51.19 | 2.24 | 53.43 | 51.19 | 2.24 | 1/2/2020 | 4.50 | 53.43 | 51.19 | 2.24 | 53.43 | 51.19 | 2.24 | ||||||||||||||||||||||||||||||||||||||||||
Third | 3/31/2020 | 2.12 | 25.00 | 24.19 | 0.81 | 25.00 | 24.19 | 0.81 | 3/31/2020 | 2.12 | 25.00 | 24.19 | 0.81 | 25.00 | 24.19 | 0.81 | ||||||||||||||||||||||||||||||||||||||||||
Fourth | 7/13/2020 | 2.56 | 29.97 | 29.24 | 0.73 | 29.97 | 29.24 | 0.73 | 7/13/2020 | 2.56 | 29.97 | 29.24 | 0.73 | 29.97 | 29.24 | 0.73 | ||||||||||||||||||||||||||||||||||||||||||
Fifth | 10/19/2020 | 2.56 | 29.95 | 29.20 | 0.75 | 29.95 | 29.20 | 0.75 | 10/19/2020 | 2.56 | 29.95 | 29.20 | 0.75 | 29.95 | 29.20 | 0.75 | ||||||||||||||||||||||||||||||||||||||||||
Sixth | 1/7/2021 | 4.28 | 50.01 | 48.67 | 1.34 | 50.01 | 48.67 | 1.34 | 1/7/2021 | 4.28 | 50.01 | 48.67 | 1.34 | 50.01 | 48.67 | 1.34 | ||||||||||||||||||||||||||||||||||||||||||
Seventh (a) | 5/13/2021 | 2.58 | 30.02 | 29.33 | 0.69 | 30.02 | 29.33 | 0.69 | 5/13/2021 | 2.58 | 30.02 | 29.33 | 0.69 | 30.02 | 29.33 | 0.69 | ||||||||||||||||||||||||||||||||||||||||||
Eighth | 10/8/2021 | 3.44 | 40.02 | 39.14 | 0.88 | 40.02 | 39.14 | 0.88 | 10/8/2021 | 3.44 | 40.02 | 39.14 | 0.88 | 40.02 | 39.14 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||
Ninth | 2/4/2022 | 3.44 | - | - | - | 40.00 | - | - | 2/4/2022 | 3.44 | 39.98 | 39.15 | 0.83 | 39.98 | 39.15 | 0.83 | ||||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 29.23 | $ | 303.10 | $ | 293.28 | 9.82 | $ | 343.10 | $ | 293.28 | 9.82 | Subtotal | $ | 29.23 | $ | 343.08 | $ | 332.43 | 10.65 | $ | 343.08 | $ | 332.43 | 10.65 | |||||||||||||||||||||||||||||||||
Distributions Reversed | Distributions Reversed | Distributions Reversed | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disallowed/cancelled (b) | Disallowed/cancelled (b) | (3.12 | ) | (3.20 | ) | Disallowed/cancelled (b) | (3.57 | ) | (3.62 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Returned (c) | 0.74 | 0.74 | Returned (c) | 0.73 | 0.73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (2.38 | ) | (2.46 | ) | Subtotal | (2.84 | ) | (2.89 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Paid from Reserve Account (d) | Distributions Paid from Reserve Account (d) | (2.27 | ) | (2.29 | ) | Distributions Paid from Reserve Account (d) | (2.78 | ) | (2.87 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Payable, Net | Distributions Payable, Net | as of 12/31/2021: | $ | 5.17 | as of 2/10/2022: | $ | 5.07 | Distributions Payable, Net | as of 3/31/2022: | $ | 5.03 | as of 5/13/2022: | $ | 4.89 |
(a) | The seventh distribution included the cash the Trust received from Fair Funds. |
(b) | As a result of claims being disallowed or Class A Interests cancelled. |
(c) | Distribution checks returned or not cashed. |
(d) | Paid as claims are allowed or resolved. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Preferential transfers. Certain of the actions include claims arising under chapter 5 of the Bankruptcy Code, and seek to avoid or recover payments made by the Debtors during the 90 days prior to the December 4, 2017 bankruptcy filing, including payments to miscellaneous vendors and former Noteholders and Unitholders. |
Fraudulent transfers (Interest to Noteholders and Unitholders). Certain of the actions include claims arising under chapter 5 of the Bankruptcy Code, and seek to avoid or recover payments made by the Debtors during the course of the Ponzi scheme (from July 2012 through the December 4, 2017 bankruptcy filing) for interest paid to former Noteholders and Unitholders. |
Fraudulent transfers (Shapiro personal expenses). Certain of the actions include claims arising under chapter 5 of the Bankruptcy Code, and seek to avoid and recover payments made by the Debtors during the course of the Ponzi scheme (from July 2012 through the December 4, 2017 bankruptcy filing) for the personal expenses of Robert and Jeri Shapiro, including those identified in a forensic report prepared in connection with an SEC enforcement action in the United States District Court for the Southern District of Florida. |
Fraudulent transfers and fraud (against former agents). These actions, which arise under chapter 5 of the Bankruptcy Code and applicable state law governing fraudulent transfers, seek to avoid and recover payments made by the Debtors during the course of the Ponzi scheme (from July 2012 through the December 4, 2017 bankruptcy filing) for commissions to former agents, as well as for fraud, aiding and abetting fraud, and the unlicensed sale of securities asserted by the Trust based on claims contributed to the Trust by defrauded investors. These actions were filed by the Trust in the United States Bankruptcy Court for the District of Delaware between November 15, 2019 and December 4, 2019. Actions of this type are also being pursued by the SEC, and it is the Trust’s understanding that any recoveries obtained by the SEC will be transmitted to the Trust pursuant to a Fair Fund established by the SEC. |
Other legal proceedings. In addition, other legal proceedings are being prosecuted by the Trust and United States governmental authorities, which actions may result in recoveries in favor of the Trust. Such actions currently include: |
o | Actions regarding the Shapiro’s personal |
Criminal proceeding and forfeiture. In connection with the United States’ criminal case against Robert Shapiro (Case No. No. 19-20178-CR-ALTONAGA (S.D. Fla. 2019)), Shapiro agreed to the forfeiture of certain assets. The Trust filed a petition in the Florida court to claim the Forfeited Assets as property of the Debtors’ estates, and therefore as property that had vested in the Trust pursuant to the Plan. The Trust has entered into an agreement with the United States Department of Justice to resolve its claim. The agreement was approved by the Bankruptcy Court on September 17, 2020 and was approved by the United States District Court on October 1, 2020. Among other things, the agreement provides for the release of specified Forfeited Assets by the United States to the Trust, and for the Trust to liquidate those assets and distribute the net sale proceeds to Qualifying Victims, which include the vast majority of Trust beneficiaries—specifically, all former holders of Class 3 and 5 claims under the Plan and their permitted assigns—but do not include former holders of Class 4 claims under the Plan. The Trust has taken possession of the Forfeited Assets and has sold the wine and gold assets. |
Date of Sale | Number of Class A Interests Sold | Number of Class B Interests Sold | Nature of the Transaction | Consideration Received | ||||
January 31, 2022 | 4,674.25 | - | Allowance of claims | Allowance of claims | ||||
Total | 4,674.25 | - |
Exhibit Description | |
First Amended Joint Chapter 11 Plan of Liquidation of Woodbridge Group of Companies, LLC and its Affiliated Debtors dated August 22, 2018, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Certificate of Trust of Woodbridge Liquidation Trust dated February 14 and effective February 15, 2019, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Liquidation Trust Agreement of Woodbridge Liquidation Trust dated February 15, 2019, as amended by Amendment No. 1 dated August 21, 2019 and Amendment No. 2 dated September 13, 2019, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Amendment No. 3 to Liquidation Trust Agreement dated as of November 1, 2019, incorporated herein by reference to Amendment No. 1 to Registration Statement on Form 10 filed by the Trust on December 13, 2019. | |
Amendment No. 4 to Liquidation Trust Agreement dated as of February 5, 2020, incorporated herein by reference to the Current Report on Form 8-K filed by the Trust on February 6, 2020. | |
Amended and Restated Bylaws of Woodbridge Liquidation Trust effective August 21, 2019, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Limited Liability Company Agreement of Woodbridge Wind-Down Entity LLC dated February 15, 2019, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Loan and Security Agreement dated June 19, 2020 by and among WB Propco, LLC and WB 141 S. Carolwood, LLC, as Borrowers, Woodbridge Wind-Down Entity LLC, as Guarantor, and City National Bank of Florida, as Lender, incorporated herein by reference to Amendment No. 1 to the Current Report on Form 8-K filed by the Trust on June 29, 2020. | |
Agreement and Amendment to Loan and Security Agreement dated December 18, 2020 by and among WB Propco, LLC and WB 141 S. Carolwood, LLC, as Borrowers, Woodbridge Wind-Down Entity, LLC, as Guarantor, and City National Bank of Florida, as Lender, incorporated by reference herein to the Form 10-Q filed by the Trust on May 17, 2021. | |
Assumption Agreement and Joinder dated February 11, 2021 by and among WB Propco, LLC, WB 638 Siena, LLC and WB 642 St. Cloud, LLC, as co-borrowers, Woodbridge Wind Down Entity, LLC, as guarantor, and City National Bank of Florida, incorporated by reference herein to the Form 10-Q filed by the Trust on May 17, 2021. | |
Amended and Restated Security Agreement dated February 11, 2021 by WB Propco, LLC, WB 638 Siena, LLC and WB 642 St. Cloud, LLC in favor of City National Bank of Florida, incorporated by reference herein to the Form 10-Q filed by the Trust on May 17, 2021. | |
Amended and Restated Employment Agreement dated July 31, 2019 between Woodbridge Wind-Down Entity LLC and Frederick Chin, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
First Amendment to Amended and Restated Employment Agreement dated September 24, 2020 between Woodbridge Wind-Down Entity LLC and Frederick Chin, incorporated herein by reference to the Form 10-K filed by the Trust on September 28, 2020. | |
Indemnification Agreement dated February 27, 2019 between Woodbridge Wind-Down Entity LLC and Frederick Chin, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
Employment Agreement dated November 12, 2019 between Woodbridge Wind-Down Entity LLC and Marion W. Fong, incorporated herein by reference to Amendment No. 1 to Registration Statement on Form 10 filed by the Trust on December 13, 2019. |
First Amendment to Employment Agreement dated September 24, 2020 between Woodbridge Wind-Down Entity LLC and Marion W. Fong, incorporated herein by reference to the Form 10-K filed by the Trust on September 28, 2020. | |
Indemnification Agreement dated November 12, 2019 between Woodbridge Wind-Down Entity LLC and Marion W. Fong, incorporated herein by reference to Amendment No. 1 to Registration Statement on Form 10 filed by the Trust on December 13, 2019. | |
Employment Agreement dated November 12, 2019 between Woodbridge Wind-Down Entity LLC and David Mark Kemper, incorporated herein by reference to Amendment No. 1 to Registration Statement on Form 10 filed by the Trust on December 13, 2019. | |
First Amendment to Employment Agreement dated September 24, 2020 between Woodbridge Wind-Down Entity LLC and David Mark Kemper, incorporated herein by reference to the Form 10-K filed by the Trust on September 28, 2020. | |
Indemnification Agreement dated November 12, 2019 between Woodbridge Wind-Down Entity LLC and David Mark Kemper, incorporated herein by reference to Amendment No. 1 to Registration Statement on Form 10 filed by the Trust on December 13, 2019. | |
Stipulation and Settlement Agreement between the United States and Woodbridge Liquidation Trust, as approved by order of the United States Bankruptcy Court for the District of Delaware entered September 17, 2020, incorporated herein by reference to the Form 10-K filed by the Trust on September 28, 2020. | |
Settlement Agreement dated August 6, 2021 by and among Mark Baker, Jay Beynon as Trustee for the Jay Beynon Family Trust DTD 10/23/1998, Alan and Marlene Gordon, Joseph C. Hull, Lloyd and Nancy Landman, and Lilly A. Shirley on behalf of themselves and the proposed Settlement Class, Michael I. Goldberg, as Trustee for Woodbridge Liquidation Trust, and Comerica Bank, incorporated herein by reference to the Form 10-K filed by the Trust on September 27, 2021. | |
California Residential Purchase Agreement and Joint Escrow Instructions dated October 19, 2021 for 642 St. Cloud Rd., Los Angeles, CA, including | |
Certification of Liquidation Trustee pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of Liquidation Trustee pursuant to 18 U.S.C. 1350, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Findings of Fact, Conclusions of Law, and Order Confirming the First Amended Joint Chapter 11 Plan of Liquidation of Woodbridge Group of Companies, LLC and its Affiliated Debtors, entered October 26, 2018, incorporated herein by reference to the Registration Statement on Form 10 filed by the Trust on October 25, 2019. | |
101 | The following financial statements from the Woodbridge Liquidation Trust Quarterly Report on Form 10-Q for the quarter ended |
104 | Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101). |
Woodbridge Liquidation Trust | ||
Date: | By: | /s/ Michael I. Goldberg |
Michael I. Goldberg, | ||
Liquidation Trustee |