☒ | 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 (CONTINUED) |
Item 1. | Financial Statements |
Woodbridge Liquidation Trust and Subsidiaries Consolidated Statements of Net Assets in Liquidation As of |
(Unaudited, $ In Thousands) |
3/31/2022 | 6/30/2021 | 12/31/2022 | 6/30/2022 | |||||||||||||
Assets | ||||||||||||||||
Real estate assets held for sale, net (Note 3) | $ | 29,441 | $ | 29,062 | ||||||||||||
Single-family homes | $ | 92,544 | $ | 137,945 | ||||||||||||
Other real estate assets | 1,998 | 2,910 | ||||||||||||||
Subtotal | 94,542 | 140,855 | ||||||||||||||
Cash and cash equivalents | 34,393 | 45,369 | 27,868 | 96,810 | ||||||||||||
Restricted cash (Note 4) | 9,098 | 8,273 | 4,316 | 6,121 | ||||||||||||
Other assets (Note 5) | 5,731 | 5,473 | 1,157 | 5,825 | ||||||||||||
Total assets | $ | 143,764 | $ | 199,970 | $ | 62,782 | $ | 137,818 | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 1,366 | $ | 160 | $ | 213 | $ | 119 | ||||||||
Distributions payable | 5,031 | 4,687 | 1,220 | 68,767 | ||||||||||||
Accrued liquidation costs (Note 6) | 41,105 | 65,583 | 22,197 | 34,537 | ||||||||||||
Total liabilities | $ | 47,502 | $ | 70,430 | $ | 23,630 | $ | 103,423 | ||||||||
Commitments and Contingencies (Note 14) | 0 | 0 | ||||||||||||||
Net Assets in Liquidation | ||||||||||||||||
Restricted for Qualifying Victims (Note 7) | $ | 3,203 | $ | 3,167 | $ | 3,483 | $ | 3,485 | ||||||||
All Interestholders | 93,059 | 126,373 | 35,669 | 30,910 | ||||||||||||
Total net assets in liquidation | $ | 96,262 | $ | 129,540 | $ | 39,152 | $ | 34,395 |
PART I. | FINANCIAL INFORMATION |
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 March 31, 2022 | Three Months Ended March 31, 2021 | Three Months Ended December 31, 2022 | Three Months Ended December 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 | $ | 3,203 | $ | 124,302 | $ | 127,505 | $ | 0 | $ | 210,476 | $ | 210,476 | $ | 3,483 | $ | 34,433 | $ | 37,916 | $ | 3,167 | $ | 131,376 | $ | 134,543 | ||||||||||||||||||||||||
Change in assets and liabilities (Note 8): | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted for Qualifying Victims - | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 3,459 | 0 | 3,459 | - | - | - | 36 | - | 36 | ||||||||||||||||||||||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 0 | 8,266 | 8,266 | 0 | 1,974 | 1,974 | - | 1,236 | 1,236 | - | 32,752 | 32,752 | ||||||||||||||||||||||||||||||||||||
Distributions (declared) reversed, net | 0 | (39,509 | ) | (39,509 | ) | 0 | (49,958 | ) | (49,958 | ) | - | - | - | - | (39,826 | ) | (39,826 | ) | ||||||||||||||||||||||||||||||
Net change in assets and liabilities | 0 | (31,243 | ) | (31,243 | ) | 0 | (47,984 | ) | (47,984 | ) | - | 1,236 | 1,236 | - | (7,074 | ) | (7,074 | ) | ||||||||||||||||||||||||||||||
Net Assets in Liquidation as of end of period | $ | 3,203 | $ | 93,059 | $ | 96,262 | $ | 3,459 | $ | 162,492 | $ | 165,951 | $ | 3,483 | $ | 35,669 | $ | 39,152 | $ | 3,203 | $ | 124,302 | $ | 127,505 |
PART I. | FINANCIAL INFORMATION |
Item 1. | Financial Statements (Continued) |
Woodbridge Liquidation Trust and Subsidiaries Consolidated Statements of Changes in Net Assets in Liquidation For the |
(Unaudited, $ in Thousands) |
Nine Months Ended March 31, 2022 | Nine Months Ended March 31, 2021 | Six Months Ended December 31, 2022 | Six Months Ended December 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 | $ | 3,485 | $ | 30,910 | $ | 34,395 | $ | 3,167 | $ | 126,373 | $ | 129,540 | ||||||||||||||||||||||||
Change in assets and liabilities (Note 8): | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted for Qualifying Victims - | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 36 | 0 | 36 | 3,459 | 0 | 3,459 | (2 | ) | - | (2 | ) | 36 | - | 36 | ||||||||||||||||||||||||||||||||||
All Interestholders : | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | 0 | 45,922 | 45,922 | 0 | 7,529 | 7,529 | - | 2,121 | 2,121 | - | 37,657 | 37,657 | ||||||||||||||||||||||||||||||||||||
Distributions (declared) reversed, net | 0 | (79,236 | ) | (79,236 | ) | 0 | (109,554 | ) | (109,554 | ) | - | 2,638 | 2,638 | - | (39,728 | ) | (39,728 | ) | ||||||||||||||||||||||||||||||
Net change in assets and liabilities | 0 | (33,314 | ) | (33,314 | ) | 0 | (102,025 | ) | (102,025 | ) | - | 4,759 | 4,759 | - | (2,071 | ) | (2,071 | ) | ||||||||||||||||||||||||||||||
Net Assets in Liquidation as of end of period | $ | 3,203 | $ | 93,059 | $ | 96,262 | $ | 3,459 | $ | 162,492 | $ | 165,951 | $ | 3,483 | $ | 35,669 | $ | 39,152 | $ | 3,203 | $ | 124,302 | $ | 127,505 |
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 (Continued) For the Three and Six Months Ended December 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 (Continued) For the Three and Six Months Ended December 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 (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
The Company separately presents the portion of net assets in liquidation that are restricted for Qualifying Victims (Note 7) from the net assets in liquidation that are available to All Interestholders. |
3) | Real Estate Assets Held for Sale |
March 31, 2022 | June 30, 2021 | December 31, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Assets | Gross Value | Closing and Other Costs | Net Value | Number of Assets | Gross Value | Closing and Other Costs | Net Value | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
Single-family home | 1 | $ | 28,000 | $ | (1,680 | ) | $ | 26,320 | 1 | $ | 28,000 | $ | (1,680 | ) | $ | 26,320 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other real estate assets: | Other real estate assets: | Other real estate assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured loans | 2 | 986 | (40 | ) | 946 | 4 | 1,945 | (87 | ) | 1,858 | 2 | 950 | - | 950 | 2 | 972 | (40 | ) | 932 | |||||||||||||||||||||||||||||||||||||||||||||
Other properties | 2 | 1,107 | (55 | ) | 1,052 | 2 | 1,107 | (55 | ) | 1,052 | 2 | 2,450 | (279 | ) | 2,171 | 2 | 2,000 | (190 | ) | 1,810 | ||||||||||||||||||||||||||||||||||||||||||||
Subtotal | 4 | 2,093 | (95 | ) | 1,998 | 6 | 3,052 | (142 | ) | 2,910 | 4 | 3,400 | (279 | ) | 3,121 | 4 | 2,972 | (230 | ) | 2,742 | ||||||||||||||||||||||||||||||||||||||||||||
Total | 7 | $ | 100,544 | $ | (6,002 | ) | $ | 94,542 | 13 | $ | 149,802 | $ | (8,947 | ) | $ | 140,855 | 5 | $ | 31,400 | $ | (1,959 | ) | $ | 29,441 | 5 | $ | 30,972 | $ | (1,910 | ) | $ | 29,062 |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
4) | Restricted Cash |
March 31, 2022 | June 30, 2021 | December 31, 2022 | June 30, 2022 | |||||||||||||
Forfeited Assets (Note 7) | $ | 3,095 | $ | 2,395 | ||||||||||||
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 | 1,221 | 3,726 | ||||||||||
Forfeited Assets (Note 7) | 2,317 | 1,836 | ||||||||||||||
Interest reserve (Note 9) | 1,750 | 1,750 | ||||||||||||||
Total restricted cash | $ | 9,098 | $ | 8,273 | $ | 4,316 | $ | 6,121 |
5) | Other Assets |
March 31, 2022 | June 30, 2021 | December 31, 2022 | June 30, 2022 | |||||||||||||
Escrow receivables (a) | $ | 3,560 | $ | 2,500 | ||||||||||||
Forfeited Assets (Note 7) | 1,059 | 1,549 | $ | 542 | $ | 1,258 | ||||||||||
Settlement installment receivables, net (b) | 712 | 1,014 | ||||||||||||||
Settlement installment receivables, net (a) | 405 | 756 | ||||||||||||||
Escrow receivables (b) | 20 | 3,420 | ||||||||||||||
Other | 400 | 410 | 190 | 391 | ||||||||||||
Total other assets | $ | 5,731 | $ | 5,473 | $ | 1,157 | $ | 5,825 |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
6) | Accrued Liquidation Costs |
March 31, 2022 | June 30, 2021 | December 31, 2022 | June 30, 2022 | |||||||||||||
Development costs: | ||||||||||||||||
Construction warranty | $ | 4,184 | $ | 4,184 | ||||||||||||
Construction costs | $ | 11,564 | $ | 23,480 | 1,953 | 4,331 | ||||||||||
Construction warranty | 2,870 | 2,870 | ||||||||||||||
Indirect costs | 498 | 712 | 102 | 170 | ||||||||||||
Bond refunds | (699 | ) | (1,134 | ) | (388 | ) | (506 | ) | ||||||||
Total development costs | 14,233 | 25,928 | 5,851 | 8,179 | ||||||||||||
Holding costs: | ||||||||||||||||
Property tax | 836 | 1,901 | 681 | 771 | ||||||||||||
Insurance | 462 | 1,291 | 325 | 388 | ||||||||||||
Maintenance, utilities and other | 479 | 1,000 | 195 | 428 | ||||||||||||
Total holding costs | 1,777 | 4,192 | 1,201 | 1,587 | ||||||||||||
General and administrative costs: | ||||||||||||||||
Legal and other professional fees | 10,475 | 17,697 | 8,648 | 12,377 | ||||||||||||
Directors and officers insurance | 2,508 | 2,508 | ||||||||||||||
Payroll and payroll-related | 8,546 | 10,432 | 2,484 | 7,989 | ||||||||||||
Board fees and expenses | 495 | 630 | ||||||||||||||
State, local and other taxes | 2,188 | 2,217 | 330 | 331 | ||||||||||||
Directors and officers insurance | 2,024 | 2,576 | ||||||||||||||
Board fees and expenses | 698 | 1,558 | ||||||||||||||
Other | 1,164 | 983 | 680 | 936 | ||||||||||||
Total general and administrative costs | 25,095 | 35,463 | 15,145 | 24,771 | ||||||||||||
Total accrued liquidation costs | $ | 41,105 | $ | 65,583 | $ | 22,197 | $ | 34,537 |
7) | Forfeited Assets - Restricted for Qualifying Victims |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
March 31, 2022 | June 30, 2021 | December 31, 2022 | June 30, 2022 | |||||||||||||
Restricted cash (Note 4) | $ | 2,317 | $ | 1,836 | $ | 3,095 | $ | 2,395 | ||||||||
Other assets (Note 5) | 1,059 | 1,549 | 542 | 1,258 | ||||||||||||
Accrued liquidation costs | (173 | ) | (218 | ) | ||||||||||||
Accrued liquidation costs - primarily legal and professional fees | (154 | ) | (168 | ) | ||||||||||||
Net assets in liquidation - restricted for Qualifying Victims | $ | 3,203 | $ | 3,167 | $ | 3,483 | $ | 3,485 |
8) | Net Change In Assets and Liabilities |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Real estate assets, net | $ | - | $ | - | $ | - | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Restricted cash | 111 | 0 | 111 | 131 | - | 131 | ||||||||||||||||||
Other assets | (120 | ) | 0 | (120 | ) | (136 | ) | - | (136 | ) | ||||||||||||||
Total assets | $ | (9 | ) | $ | 0 | $ | (9 | ) | $ | (5 | ) | $ | - | $ | (5 | ) | ||||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | $ | - | $ | - | $ | - | ||||||||||||
Accrued liquidation costs | (9 | ) | 0 | (9 | ) | (5 | ) | - | (5 | ) | ||||||||||||||
Total liabilities | $ | (9 | ) | $ | 0 | $ | (9 | ) | $ | (5 | ) | $ | - | $ | (5 | ) | ||||||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 0 | $ | 0 | $ | - | $ | - | $ | - |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Real estate assets, net | $ | - | $ | - | $ | - | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Restricted cash | 28 | 0 | 28 | 389 | - | 389 | ||||||||||||||||||
Other assets | 0 | 3,442 | 3,442 | (406 | ) | 36 | (370 | ) | ||||||||||||||||
Total assets | $ | 28 | $ | 3,442 | $ | 3,470 | $ | (17 | ) | $ | 36 | $ | 19 | |||||||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 11 | $ | 11 | $ | - | $ | - | $ | - | ||||||||||||
Accrued liquidation costs | 0 | 0 | 0 | (17 | ) | - | (17 | ) | ||||||||||||||||
Total liabilities | $ | 0 | $ | 11 | $ | 11 | $ | (17 | ) | $ | - | $ | (17 | ) | ||||||||||
Change in carrying value of assets and liabilities, net | $ | 28 | $ | 3,431 | $ | 3,459 | $ | - | $ | 36 | $ | 36 |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Real estate assets, net | $ | - | $ | - | $ | - | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Restricted cash | 481 | 0 | 481 | 700 | - | 700 | ||||||||||||||||||
Other assets | (526 | ) | 36 | (490 | ) | (716 | ) | - | (716 | ) | ||||||||||||||
Total assets | $ | (45 | ) | $ | 36 | $ | (9 | ) | $ | (16 | ) | $ | - | $ | (16 | ) | ||||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 0 | $ | 0 | $ | - | $ | - | $ | - | ||||||||||||
Accrued liquidation costs | (45 | ) | 0 | (45 | ) | (14 | ) | - | (14 | ) | ||||||||||||||
Total liabilities | $ | (45 | ) | $ | 0 | $ | (45 | ) | $ | (14 | ) | $ | - | $ | (14 | ) | ||||||||
Change in carrying value of assets and liabilities, net | $ | 0 | $ | 36 | $ | 36 | $ | (2 | ) | $ | - | $ | (2 | ) |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Real estate assets, net | $ | - | $ | - | $ | - | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | - | - | - | ||||||||||||||||||
Restricted cash | 28 | 0 | 28 | 370 | - | 370 | ||||||||||||||||||
Other assets | 0 | 3,442 | 3,442 | (406 | ) | 36 | (370 | ) | ||||||||||||||||
Total assets | $ | 28 | $ | 3,442 | $ | 3,470 | $ | (36 | ) | $ | 36 | $ | - | |||||||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 11 | $ | 11 | $ | - | $ | - | $ | - | ||||||||||||
Accrued liquidation costs | 0 | 0 | 0 | (36 | ) | - | (36 | ) | ||||||||||||||||
Total liabilities | $ | 0 | $ | 11 | $ | 11 | $ | (36 | ) | $ | - | $ | (36 | ) | ||||||||||
Change in carrying value of assets and liabilities, net | $ | 28 | $ | 3,431 | $ | 3,459 | $ | - | $ | 36 | $ | 36 |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (736 | ) | $ | 9,870 | $ | 9,134 | |||||||||||||||||
Real estate assets, net | $ | (10 | ) | $ | 401 | $ | 391 | |||||||||||||||||
Cash and cash equivalents | 19,910 | 0 | 19,910 | (3,999 | ) | - | (3,999 | ) | ||||||||||||||||
Restricted cash | 0 | 0 | 0 | (1 | ) | - | (1 | ) | ||||||||||||||||
Other assets | (24,991 | ) | 20 | (24,971 | ) | (511 | ) | 1 | (510 | ) | ||||||||||||||
Total assets | $ | (5,817 | ) | $ | 9,890 | $ | 4,073 | $ | (4,521 | ) | $ | 402 | $ | (4,119 | ) | |||||||||
Accounts payable and accrued liabilities | $ | 0 | $ | 79 | $ | 79 | $ | (8 | ) | $ | 118 | $ | 110 | |||||||||||
Accrued liquidation costs | (6,500 | ) | 2,228 | (4,272 | ) | (4,594 | ) | (871 | ) | (5,465 | ) | |||||||||||||
Total liabilities | $ | (6,500 | ) | $ | 2,307 | $ | (4,193 | ) | $ | (4,602 | ) | $ | (753 | ) | $ | (5,355 | ) | |||||||
Change in carrying value of assets and liabilities, net | $ | 683 | $ | 7,583 | $ | 8,266 | $ | 81 | $ | 1,155 | $ | 1,236 |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Distributions declared | $ | (39,981 | ) | |
Distributions reversed | 472 | |||
Distributions (declared) reversed, net | $ | (39,509 | ) |
Distributions declared | $ | - | ||
Distributions reversed | - | |||
Distributions declared, net | $ | - |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (9 | ) | $ | 0 | $ | (9 | ) | ||||||||||||||||
Real estate assets, net | $ | (21,247 | ) | $ | 5,289 | $ | (15,958 | ) | ||||||||||||||||
Cash and cash equivalents | (11,199 | ) | 0 | (11,199 | ) | 13,547 | - | 13,547 | ||||||||||||||||
Restricted cash | 1,262 | 0 | 1,262 | - | - | - | ||||||||||||||||||
Other assets | (287 | ) | (1,091 | ) | (1,378 | ) | (307 | ) | 25,902 | 25,595 | ||||||||||||||
Total assets | $ | (10,233 | ) | $ | (1,091 | ) | $ | (11,324 | ) | $ | (8,007 | ) | $ | 31,191 | $ | 23,184 | ||||||||
Accounts payable and accrued liabilities | $ | 42 | $ | 30 | $ | 72 | $ | (184 | ) | $ | 1,262 | $ | 1,078 | |||||||||||
Accrued liquidation costs | (11,238 | ) | (2,132 | ) | (13,370 | ) | (8,489 | ) | (2,157 | ) | (10,646 | ) | ||||||||||||
Total liabilities | $ | (11,196 | ) | $ | (2,102 | ) | $ | (13,298 | ) | $ | (8,673 | ) | $ | (895 | ) | $ | (9,568 | ) | ||||||
Change in carrying value of assets and liabilities, net | $ | 963 | $ | 1,011 | $ | 1,974 | $ | 666 | $ | 32,086 | $ | 32,752 |
Distributions declared | $ | (50,005 | ) | $ | (40,017 | ) | ||
Distributions reversed | 47 | 191 | ||||||
Distributions (declared) reversed, net | $ | (49,958 | ) | |||||
Distributions declared, net | $ | (39,826 | ) |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (64,437 | ) | $ | 18,124 | $ | (46,313 | ) | ||||||||||||||||
Real estate assets, net | $ | (22 | ) | $ | 401 | $ | 379 | |||||||||||||||||
Cash and cash equivalents | 68,260 | 0 | 68,260 | (6,539 | ) | - | (6,539 | ) | ||||||||||||||||
Restricted cash | 0 | 0 | 0 | 1 | - | 1 | ||||||||||||||||||
Other assets | (25,998 | ) | 26,745 | 747 | (3,843 | ) | (109 | ) | (3,952 | ) | ||||||||||||||
Total assets | $ | (22,175 | ) | $ | 44,869 | $ | 22,694 | $ | (10,403 | ) | $ | 292 | $ | (10,111 | ) | |||||||||
Accounts payable and accrued liabilities | $ | (184 | ) | $ | 1,390 | $ | 1,206 | $ | (33 | ) | $ | 127 | $ | 94 | ||||||||||
Accrued liquidation costs | (23,712 | ) | (722 | ) | (24,434 | ) | (11,074 | ) | (1,252 | ) | (12,326 | ) | ||||||||||||
Total liabilities | $ | (23,896 | ) | $ | 668 | $ | (23,228 | ) | $ | (11,107 | ) | $ | (1,125 | ) | $ | (12,232 | ) | |||||||
Change in carrying value of assets and liabilities, net | $ | 1,721 | $ | 44,201 | $ | 45,922 | $ | 704 | $ | 1,417 | $ | 2,121 |
Distributions declared | $ | (79,997 | ) | $ | - | |||
Distributions reversed | 761 | 2,638 | ||||||
Distributions (declared) reversed, net | $ | (79,236 | ) | |||||
Distributions declared, net | $ | 2,638 |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Cash | Remeasure- | Cash | Remeasure- | |||||||||||||||||||||
Activities | ment | Total | Activities | ment | Total | |||||||||||||||||||
Real estate assets held for sale, net | $ | (121,186 | ) | $ | (13,184 | ) | $ | (134,370 | ) | |||||||||||||||
Real estate assets, net | $ | (63,701 | ) | $ | 8,254 | $ | (55,447 | ) | ||||||||||||||||
Cash and cash equivalents | 87,650 | 0 | 87,650 | 48,350 | - | 48,350 | ||||||||||||||||||
Restricted cash | 2,528 | 0 | 2,528 | - | - | - | ||||||||||||||||||
Other assets | (2,164 | ) | (762 | ) | (2,926 | ) | (1,007 | ) | 26,725 | 25,718 | ||||||||||||||
Total assets | $ | (33,172 | ) | $ | (13,946 | ) | $ | (47,118 | ) | $ | (16,358 | ) | $ | 34,979 | $ | 18,621 | ||||||||
Accounts payable and accrued liabilities | $ | (947 | ) | $ | 423 | $ | (524 | ) | $ | (184 | ) | $ | 1,311 | $ | 1,127 | |||||||||
Accrued liquidation costs | (41,236 | ) | (12,887 | ) | (54,123 | ) | (17,212 | ) | (2,951 | ) | (20,163 | ) | ||||||||||||
Total liabilities | $ | (42,183 | ) | $ | (12,464 | ) | $ | (54,647 | ) | $ | (17,396 | ) | $ | (1,640 | ) | $ | (19,036 | ) | ||||||
Change in carrying value of assets and liabilities, net | $ | 9,011 | $ | (1,482 | ) | $ | 7,529 | $ | 1,038 | $ | 36,619 | $ | 37,657 |
Distributions declared | $ | (109,932 | ) | $ | (40,017 | ) | ||
Distributions reversed | 378 | 289 | ||||||
Distributions (declared) reversed, net | $ | (109,554 | ) | |||||
Distributions declared, net | $ | (39,728 | ) |
9) | Credit Agreement |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
10) | Beneficial Interests |
For the Nine Months Ended March 31, | For the Six Months Ended December 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Liquidation Trust Interests | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||||||||||||||
Outstanding at beginning of period | 11,512,855 | 675,784 | 11,518,232 | 675,558 | 11,513,535 | 675,617 | 11,512,855 | 654,784 | ||||||||||||||||||||||||
Allowed claims | 4,976 | 0 | 10,367 | 1,133 | 1,348 | - | 302 | - | ||||||||||||||||||||||||
5% enhancement for certain allowed claims | 0 | 0 | 182 | 56 | 67 | - | - | - | ||||||||||||||||||||||||
Settlement of claims by cancelling Liquidation | ||||||||||||||||||||||||||||||||
Trust Interests | (1,392 | ) | (167 | ) | (15,121 | ) | (435 | ) | ||||||||||||||||||||||||
Settlement of claims by cancelling Liquidation Trust Interests | (760 | ) | - | (1,392 | ) | (167 | ) | |||||||||||||||||||||||||
Outstanding at end of period | 11,516,439 | 675,617 | 11,513,660 | 676,312 | 11,514,190 | 675,617 | 11,511,765 | 654,617 |
For the Nine Months Ended March 31, | For the Six Months Ended December 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 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 | 90,793 | 333 | 124,609 | 5,011 | ||||||||||||||||||||||||
Allowed claims | (4,976 | ) | 0 | (10,367 | ) | (1,133 | ) | (1,348 | ) | - | (302 | ) | - | |||||||||||||||||||
5% enhancement for certain allowed claims | 0 | 0 | (32 | ) | 0 | - | - | - | - | |||||||||||||||||||||||
Disallowed claims | (28,840 | ) | (4,678) | (44,372 | ) | (974 | ) | (75,570 | ) | - | (10,547 | ) | - | |||||||||||||||||||
Reserved for unresolved claims at end of period | 90,793 | 333 | 138,788 | 5,011 | 13,875 | 333 | 113,760 | 5,011 |
11) | Distributions |
Three months ended December 31, 2022 | Three months ended December 31, 2021 | |||||||||||||||||||||||||||||
Date Declared | $ per Class A Interest | Total Declared | Paid | Deposits Into Restricted Cash Account | Total Declared | Paid | Deposits Into Restricted Cash Account | |||||||||||||||||||||||
Eighth | 10/8/2021 | $ | 3.44 | $ | - | $ | - | $ | - | $ | 40.02 | $ | 39.14 | $ | 0.88 |
Six months ended December 31, 2022 | Six months ended December 31, 2021 | |||||||||||||||||||||||||||||
Date Declared | $ per Class A Interest | Total Declared | Paid | Deposits Into Restricted Cash Account | Total Declared | Paid | Deposits Into Restricted Cash Account | |||||||||||||||||||||||
Tenth | 6/15/2022 | (a) | $ | 5.63 | $ | - | $ | 64.19 | $ | 0.82 | $ | - | $ | - | $ | - | ||||||||||||||
Eighth | 10/8/2021 | 3.44 | - | - | - | 40.02 | 39.14 | 0.88 | ||||||||||||||||||||||
Total | $ | - | $ | 64.19 | $ | 0.82 | $ | 40.02 | $ | 39.14 | $ | 0.88 |
12) | Related Party Transactions |
13) | Causes of Action |
For the Three Months Ended March 31, | For the Nine Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Comerica Bank | $ | 0 | $ | 0 | $ | 24,815 | $ | 0 | ||||||||
Other settlement recoveries | 468 | 1,278 | 1,868 | 8,443 | ||||||||||||
Total | $ | 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 |
For the Three Months Ended December 31, | For the Six Months Ended December 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Other settlement recoveries | $ | 41 | $ | 429 | $ | 231 | $ | 1,400 | ||||||||
Comerica Bank | - | 24,815 | - | 24,815 | ||||||||||||
Total | $ | 41 | $ | 25,244 | $ | 231 | $ | 26,215 |
14) | Commitments and Contingencies |
15) | Subsequent Events |
PART I. FINANCIAL INFORMATION (CONTINUED) Item 1. Financial Statements (Continued) Woodbridge Liquidation Trust and Subsidiaries Notes to Consolidated Financial Statements (Continued) For the Three and Six Months Ended December 31, 2022 and 2021 (Unaudited) |
Class of Interest | Number Outstanding | |||
Class A Liquidation Trust | ||||
Class B Liquidation Trust | 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 | ||||||||||
Net assets in liquidation as of September 30, 2022 | $ | 3,483 | $ | 34,433 | $ | 37,916 | ||||||
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 | - | 1,236 | 1,236 | |||||||||
Distributions (declared) reversed, net | - | - | - | |||||||||
Net change in assets and liabilities | - | 1,236 | 1,236 | |||||||||
Net assets in liquidation, as of December 31, 2022 | $ | 3,483 | $ | 35,669 | 39,152 |
Restricted for Qualifying Victims | All Interestholders | Total | 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 | $ | - | $ | 910 | $ | 910 | |||||||||||||||
Settlement recoveries recognized, net (1) | - | 40 | 40 | |||||||||||||||||||||
Other | - | 194 | 194 | - | 286 | 286 | ||||||||||||||||||
Change in carrying value of assets and liabilities, net | $ | - | $ | 8,266 | $ | 8,266 | $ | - | $ | 1,236 | $ | 1,236 |
(1) | Net of |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Net assets in liquidation as of December 31, 2021 | $ | - | $ | 210,476 | $ | 210,476 | ||||||||||||||||||
Net assets in liquidation as of September 30, 2021 | $ | 3,167 | $ | 131,376 | $ | 134,543 | ||||||||||||||||||
Change in assets and liabilities: | ||||||||||||||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 3,459 | - | 3,459 | 36 | - | 36 | ||||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||
All Interestholders- | ||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | - | 1,974 | 1,974 | - | 32,752 | 32,752 | ||||||||||||||||||
Distributions (declared) reversed, net | - | (49,958 | ) | (49,958 | ) | - | (39,826 | ) | (39,826 | ) | ||||||||||||||
Net change in assets and liabilities | - | (47,984 | ) | (47,984 | ) | - | (7,074 | ) | (7,074 | ) | ||||||||||||||
Net assets in liquidation, as of March 31, 2021 | $ | 3,459 | $ | 162,492 | $ | 165,951 | ||||||||||||||||||
Net assets in liquidation, as of December 31, 2021 | $ | 3,203 | $ | 124,302 | 127,505 |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Recognition of Forfeited Assets | $ | 3,459 | $ | - | $ | 3,459 | ||||||||||||||||||
Causes of Action, net(1): | ||||||||||||||||||||||||
Comerica Bank | $ | - | $ | 23,574 | $ | 23,574 | ||||||||||||||||||
Other settlement agreements | - | 408 | 408 | |||||||||||||||||||||
Remeasurement of assets and liabilities, net | - | 2,473 | 2,473 | 36 | 4,989 | 5,025 | ||||||||||||||||||
Other settlement recoveries recognized, net (1) | - | 1,326 | 1,326 | |||||||||||||||||||||
Carrying value in excess of sales proceeds | - | (1,900 | ) | (1,900 | ) | |||||||||||||||||||
Sales proceeds in excess of carrying value | - | 3,388 | 3,388 | |||||||||||||||||||||
Other | - | 75 | 75 | - | 393 | 393 | ||||||||||||||||||
Change in carrying value of assets and liabilities, net | $ | 3,459 | $ | 1,974 | $ | 5,433 | $ | 36 | $ | 32,752 | $ | 32,788 |
(1) | Net of |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Net assets in liquidation as of June 30, 2021 | $ | 3,167 | $ | 126,373 | $ | 129,540 | ||||||||||||||||||
Net assets in liquidation as of June 30, 2022 | $ | 3,485 | $ | 30,910 | $ | 34,395 | ||||||||||||||||||
Change in assets and liabilities: | ||||||||||||||||||||||||
Restricted for Qualifying Victims - change in carrying value of assets and liabilities, net | 36 | - | 36 | (2 | ) | - | (2 | ) | ||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||
All Interestholders- | ||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | - | 45,922 | 45,922 | - | 2,121 | 2,121 | ||||||||||||||||||
Distributions (declared) reversed, net | - | (79,236 | ) | (79,236 | ) | - | 2,638 | 2,638 | ||||||||||||||||
Net change in assets and liabilities | - | (33,314 | ) | (33,314 | ) | - | 4,759 | 4,759 | ||||||||||||||||
Net assets in liquidation, as of March 31, 2022 | $ | 3,203 | $ | 93,059 | $ | 96,262 | ||||||||||||||||||
Net assets in liquidation, as of December 31, 2022 | $ | 3,483 | $ | 35,669 | 39,152 |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Causes of Action, net(1) : | ||||||||||||
Comerica Bank | $ | - | $ | 23,575 | 23,575 | |||||||
Other settlement agreements | - | 1,777 | 1,777 | |||||||||
Sales proceeds in excess of carrying value | - | 6,460 | 6,460 | |||||||||
Remeasurement of assets and liabilities, net | 36 | 13,428 | 13,464 | |||||||||
Other | - | 682 | 682 | |||||||||
Change in carrying value of assets and liabilities, net | $ | 36 | $ | 45,922 | $ | 45,958 |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
Remeasurement of assets and liabilities, net | $ | (2 | ) | $ | 1,199 | $ | 1,197 | |||||
Settlement recoveries recognized, net (1) | - | 194 | 194 | |||||||||
Other | - | 728 | 728 | |||||||||
Change in carrying value of assets and liabilities, net | $ | (2 | ) | $ | 2,121 | $ | 2,119 |
(1) | Net of 5% payable to the Liquidation Trustee of approximately $10 and an allowance for uncollectible settlement installment receivables of approximately $27 during the six months ended December 31, 2022. |
Restricted for Qualifying Victims | All Interestholders | Total | Restricted for Qualifying Victims | All Interestholders | Total | |||||||||||||||||||
Net assets in liquidation as of June 30, 2020 | $ | - | $ | 264,517 | $ | 264,517 | ||||||||||||||||||
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 | 3,459 | - | 3,459 | 36 | - | 36 | ||||||||||||||||||
All Interestholders: | ||||||||||||||||||||||||
All Interestholders- | ||||||||||||||||||||||||
Change in carrying value of assets and liabilities, net | - | 7,529 | 7,529 | - | 37,657 | 37,657 | ||||||||||||||||||
Distributions (declared) reversed, net | - | (109,554 | ) | (109,554 | ) | - | (39,728 | ) | (39,728 | ) | ||||||||||||||
Net change in assets and liabilities | - | (102,025 | ) | (102,025 | ) | - | (2,071 | ) | (2,071 | ) | ||||||||||||||
Net assets in liquidation, as of March 31, 2021 | $ | 3,459 | $ | 162,492 | $ | 165,951 | ||||||||||||||||||
Net assets in liquidation, as of December 31, 2021 | $ | 3,203 | $ | 124,302 | 127,505 |
Restricted for Qualifying Victims | All 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 |
(1) | Net of 5% payable to the Liquidation Trustee of approximately $1,241 for Comerica Bank and $70 for other settlement agreements during the six months ended December 31, 2021. |
Restricted for Qualifying Victims | All Interestholders | Total | ||||||||||
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 | ) | |||||||
Remeasurement of assets and liabilities, net | - | 2,775 | 2,775 | |||||||||
Adjustment to insurance claim receivable | - | (1,900 | ) | (1,900 | ) | |||||||
Other | $ | - | $ | 181 | $ | 181 | ||||||
Change in carrying value of assets and liabilities, net | $ | 3,459 | $ | 7,529 | $ | 10,988 |
Sales of Real Estate |
Causes of Action Recoveries: During the three and |
• | Forfeited Assets: Forfeited Assets consist of cash and other assets (jewelry, art, clothing, handbags and shoes). During the three and |
| 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) | During the Period from February 15, 2019 (inception) Through December 31, 2022 ($ in Millions) | During the Period from February 15, 2019 (inception) Through February 10, 2023 ($ in Millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 39.98 | 39.15 | 0.83 | 39.98 | 39.15 | 0.83 | 2/4/2021 | 3.44 | 39.98 | 39.15 | 0.83 | 39.98 | 39.15 | 0.83 | ||||||||||||||||||||||||||||||||||||||||||
Tenth | 6/15/2022 | 5.63 | 65.02 | 64.19 | 0.83 | 65.02 | 64.19 | 0.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | Subtotal | $ | 29.23 | $ | 343.08 | $ | 332.43 | 10.65 | $ | 343.08 | $ | 332.43 | 10.65 | $ | 34.86 | $ | 408.10 | $ | 396.62 | $ | 11.48 | $ | 408.10 | $ | 396.62 | $ | 11.48 | |||||||||||||||||||||||||||||||
Distributions Reversed | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Returned / (Reversed) | Distributions Returned / (Reversed) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disallowed/cancelled (b) | Disallowed/cancelled (b) | (3.57 | ) | (3.62 | ) | Disallowed/cancelled (b) | | (6.27 | ) | (6.27 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Returned (c) | Returned (c) | 0.73 | 0.73 | Returned (c) | | 0.74 | | 0.74 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited (d) | Forfeited (d) | | (1.15 | ) | (1.14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | Subtotal | (2.84 | ) | (2.89 | ) | Subtotal | | (6.68 | ) | (6.67 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions Paid from Reserve Account (d) | (2.78 | ) | (2.87 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Paid from Reserve Account (e) | Distributions Paid from Reserve Account (e) | (3.58 | ) | (3.59 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Payable, Net | Distributions Payable, Net | as of 3/31/2022: | $ | 5.03 | as of 5/13/2022: | $ | 4.89 | Distributions Payable, Net | as of 12/31/2022: | $ | 1.22 | as of 2/10/2023: | $ | 1.22 |
(a) | The seventh distribution included the cash the Trust received from recoveries of Fair Funds. |
(b) | As a result of claims being disallowed or Class A Interests cancelled. |
(c) | Distribution checks returned or not cashed. |
(d) | Distributions forfeited as Interestholders did not cash checks that were over 180 days old. |
(e) | 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 |
• | Fraudulent transfers (Kenneth Halbert). The Trust is pursuing fraudulent transfer claims against Kenneth Halbert to avoid and recover prepetition payments of principal and interest to Mr. Halbert. The Trust filed its initial complaint on December 1, 2019 and the operative first amended complaint on December 7, 2021. Fact discovery is currently underway, to be followed by expert discovery. The court has not yet set a trial date. |
Actions regarding the Shapiro’s personal assets. On December 4, 2019, the Trust filed an action in the Bankruptcy Court, Adv. Pro. No. 10-51076 (BLS), Woodbridge Liquidation Trust v. Robert Shapiro, Jeri Shapiro, 3X a Charm, LLC, Carbondale Basalt Owners, LLC, Davana Sherman Oaks Owners, LLC, In Trend Staging, LLC, Midland Loop Enterprises, LLC, Schwartz Media Buying Company, LLC and Stover Real Estate Partners LLC. In this action, the Trust asserts claims under chapter 5 of the Bankruptcy Code and applicable state law for avoidance of preferential and fraudulent transfers together with claims for fraud, aiding and abetting fraud, the unlicensed sale of securities, breach of fiduciary duty and unjust enrichment. The Trust seeks to recover damages and assets held in the names of Robert Shapiro, Jeri Shapiro and their family members and entities owned or controlled by them, which assets the Trust contends are beneficially owned by the Debtors or for which the Debtors are entitled to recover based on the Shapiros’ defalcations, including over $20 million in avoidable transfers. On February 4, 2022, the Trust entered into a Settlement Agreement with Ms. Jeri Shapiro resolving the Trust’s adversary proceeding against Ms. Shapiro. In connection with the Settlement Agreement, Ms. Shapiro responded to interrogatories from the Trust and submitted a declaration under penalty of perjury detailing her lack of assets. Upon execution of the Settlement Agreement, Ms. Shapiro executed and delivered a Stipulated Judgment for approximately $20.6 million that will be held by the Trust in escrow for three years that can be entered without notice if the Trust learns Ms. Shapiro’s representations in her declaration were false or materially inaccurate. Additionally, Ms. Shapiro authorized the Trust to expunge the filed claims of certain co-defendants she was listed as an officer and turned over payments to the Trust that were received by certain co-defendants in the adversary proceeding. A stipulation of dismissal (as to Ms. Shapiro only) was entered on April 1, 2022. |
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 |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Exhibits | |
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. | |
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. |
Item 6. | Exhibits (Continued) |
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. | |
Part-Time Employment Agreement dated November 30, 2022 between Woodbridge Wind-Down Entity and Marion W. Fong, incorporated herein by reference to the Current Report on Form 8-K filed by the Trust on December 1, 2022. | |
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. | |
Part-Time Employment Agreement dated November 30, 2022 between Woodbridge Wind-Down Entity and David Mark Kemper, incorporated herein by reference to the Current Report on Form 8-K filed by the Trust on December 1, 2022. |
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. | |
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 |