Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Document Transition Report | false |
Entity File Number | 000-56115 |
Entity Registrant Name | Woodbridge Liquidation Trust |
Entity Central Index Key | 0001785494 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-7730868 |
Entity Address, Address Line One | 201 N. Brand Blvd., |
Entity Address, Address Line Two | Suite M |
Entity Address, City or Town | Glendale |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91203 |
City Area Code | 310 |
Local Phone Number | 765-1550 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Net
Consolidated Statements of Net Assets in Liquidation - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Assets | ||
Real estate assets held for sale, net (Note 3) | $ 29,441 | $ 29,062 |
Cash and cash equivalents | 27,868 | 96,810 |
Restricted cash (Note 4) | 4,316 | 6,121 |
Other assets (Note 5) | 1,157 | 5,825 |
Total assets | 62,782 | 137,818 |
Liabilities | ||
Accounts payable and accrued liabilities | 213 | 119 |
Distributions payable | 1,220 | 68,767 |
Accrued liquidation costs (Note 6) | 22,197 | 34,537 |
Total liabilities | 23,630 | 103,423 |
Commitments and Contingencies (Note 14) | ||
Net Assets in Liquidation | ||
Restricted for Qualifying Victims (Note 7) | 3,483 | 3,485 |
All Interestholders | 35,669 | 30,910 |
Total net assets in liquidation | $ 39,152 | $ 34,395 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets in Liquidation - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | $ 37,916 | $ 134,543 | $ 34,395 | $ 129,540 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 36 | (2) | 36 |
All Interestholders - | ||||
Change in carrying value of assets and liabilities, net | 1,236 | 32,752 | 2,121 | 37,657 |
Distributions (declared) reversed, net | 0 | (39,826) | 2,638 | (39,728) |
Net change in assets and liabilities | 1,236 | (7,074) | 4,759 | (2,071) |
Net Assets in Liquidation as of end of period | 39,152 | 127,505 | 39,152 | 127,505 |
Restricted for Qualifying Victims [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 3,483 | 3,167 | 3,485 | 3,167 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 36 | (2) | 36 |
All Interestholders - | ||||
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Distributions (declared) reversed, net | 0 | 0 | 0 | 0 |
Net change in assets and liabilities | 0 | 0 | 0 | 0 |
Net Assets in Liquidation as of end of period | 3,483 | 3,203 | 3,483 | 3,203 |
All Interestholders [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 34,433 | 131,376 | 30,910 | 126,373 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
All Interestholders - | ||||
Change in carrying value of assets and liabilities, net | 1,236 | 32,752 | 2,121 | 37,657 |
Distributions (declared) reversed, net | 0 | (39,826) | 2,638 | (39,728) |
Net change in assets and liabilities | 1,236 | (7,074) | 4,759 | (2,071) |
Net Assets in Liquidation as of end of period | $ 35,669 | $ 124,302 | $ 35,669 | $ 124,302 |
Formation and Description of Bu
Formation and Description of Business | 6 Months Ended |
Dec. 31, 2022 | |
Formation and Description of Business [Abstract] | |
Formation and Description of Business | 1) Formation and Description of Business Formation Woodbridge Liquidation Trust (the “Trust”) was established (i) for the purpose of collecting, administering, distributing and liquidating the Trust assets for the benefit of the Trust beneficiaries in accordance with the Liquidation Trust Agreement of the Trust and the First Amended Joint Chapter 11 Plan of Liquidation of Woodbridge Group of Companies, LLC and its Affiliated Debtors dated August 22, 2018 (as amended, modified, supplemented or restated from time to time, the (“Plan”)); (ii) to resolve disputed claims asserted against the Debtors; (iii) to litigate and/or settle causes of action (“Causes of Action”); and (iv) to pay certain allowed claims and statutory fees, as required by the Plan. Woodbridge Group of Companies, LLC and its affiliated debtors are individually referred to herein as a Debtor and collectively as the Debtors. The Trust was formed on February 15, 2019 (the “Plan Effective Date”) as a statutory trust under Delaware law. On the Plan Effective Date, in accordance with the Plan, (a) the following assets automatically vested in the Trust: (i) an aggregate $5,000,000 in cash from the Debtors for the purpose of funding the Trust’s initial expenses of operation; (ii) certain claims and Causes of Action; (iii) all of the outstanding equity interests of the Wind-Down Entity (as defined below); and (iv) certain other non-real estate related assets, (b) the equity interests of Woodbridge Group of Companies, LLC and Woodbridge Mortgage Investment Fund 1, LLC (together, the “Remaining Debtors”) were cancelled and new equity interests representing all of the newly issued and outstanding equity interests in the Remaining Debtors were issued to the Trust, (c) all of the other Debtors other than the Remaining Debtors were dissolved and (d) the real estate-related assets of the Debtors were automatically vested in the Trust’s wholly-owned subsidiary, Woodbridge Wind-Down Entity LLC (the “Wind-Down Entity”) or one of the Wind-Down Entity’s 43 wholly-owned single member LLCs (the “Wind-Down Subsidiaries”) formed to own the respective real estate assets. The Trust, the Remaining Debtors, the Wind-Down Entity and the Wind-Down Subsidiaries are collectively referred to herein as the “Company .” As further discussed in Note 10, the Trust has two classes of liquidation trust interests, Class A Liquidation Trust Interests (“Class A Interests”) and Class B Liquidation Trust Interests (“Class B Interests”). The holders of Class A Interests and Class B Interests are collectively referred to as “All Interestholders .” On December 24, 2019, the Trust’s Registration Statement on Form 10 became effective under the Securities Exchange Act of 1934 (the “Exchange Act”). The trading symbol for the Trust’s Class A Interests is WBQNL. Bid and asked prices for the Trust’s Class A Interests are quoted on the OTC Link ATS, the SEC-registered alternative trading system. The Class A Interests are eligible for the Depository Trust Company’s Direct Registration System (DRS) services. The Class B Interests are not registered with the SEC. Description of Business The Trust is prosecuting various Causes of Action acquired by the Trust pursuant to the Plan and is resolving claims asserted against the Debtors. As of December 31, 2022, the Company is the plaintiff in several pending lawsuits. The Company has accrued an estimate of the amount of legal costs to be incurred to pursue this litigation, excluding contingent fees. As more fully discussed in Note 2, the Company’s consolidated financial statements do not include any estimate of future net recoveries from litigation and settlement, since the Company cannot reasonably estimate them. The Wind-Down Entities’ operations are almost complete. As of December 31, 2022, one of the Wind-Down Subsidiaries owned one single-family home, located in Los Angeles, California. This single-family home is listed for sale. As of December the Wind-Down Subsidiaries also owned two secured loans and two other properties located in other states The Company is required to liquidate its assets and distribute available cash to the Trust beneficiaries. The liquidation activities are carried out by the Trust, the Wind-Down Entity and the Wind-Down Subsidiaries. As of December 31, 2022 As more fully discussed in Note 2, the Company uses the Liquidation Basis of Accounting. The Trust currently operates as one reportable segment comprised primarily of real estate assets held for sale. Net assets in liquidation represent the remaining estimated aggregate value available to Trust beneficiaries upon liquidation, with no discount for the timing of proceeds (undiscounted). Net liquidation proceeds, other recoveries and actual liquidation costs may differ materially from the estimated amounts due to the unpredictability of real estate selling prices, the impact of the COVID-19 virus and other global health crises (see below), as well as the uncertainty in the timing of liquidation of the real estate and other assets. The Trust’s expectations about the amount of any additional distributions and when they will be paid are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any additional distributions may differ materially, perhaps in adverse ways, from the Trust estimates. Furthermore, it is not possible to predict the timing of any additional distributions and any such distributions may not be made within the timing referenced in the consolidated financial statements. No assurance can be given that total distributions will equal or exceed the estimate of net assets in liquidation presented in the consolidated statements of net assets in liquidation. The Company observes health and safety guidelines, including allowing its employees to work remotely. The Company will continue to evaluate the impact of the COVID-19 virus and other global health crises on its activities, including the time needed to market and sell its remaining real estate assets and the price at which these real estate assets will be sold. The ultimate impact of the COVID-19 virus and other global health crises will depend on many factors, some of which cannot be foreseen, including the duration, severity, and geographic concentrations of the pandemic and any resurgence of the disease. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. These consolidated financial statements have been presented in accordance with Accounting Standards Codification (“ASC”) Subtopic 205-30, “Liquidation Basis of Accounting,” as amended by Accounting Standards Update (“ASU”) No. 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting.” The June 30, 2022 consolidated statement of net assets in liquidation included herein was derived from the audited consolidated financial statements but does not include all disclosures or notes required by U.S. GAAP for complete financial statements. All material intercompany accounts and transactions have been eliminated. Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the carrying amounts of assets and liabilities are revised in the period that available information supports a change in the carrying amount. Liquidation Basis of Accounting Under the liquidation basis of accounting, all assets are recorded at their estimated net realizable value or liquidation value, which represents the estimated amount of net cash that will be received upon the disposition of the assets (on an undiscounted basis). The measurement of real estate assets held for sale is based on current contracts (if any), estimates and other indications of sales value, net of estimated selling costs. To determine the value of real estate assets held for sale, the Company considered the three traditional approaches to value (cost, income and sales comparison) commonly used by the real estate appraisal community. The applicability and relevancy of each valuation approach as applied may differ by asset. In most cases, the sales comparison approach was accorded the greatest weight. This approach compares a property to other properties with similar characteristics that have recently sold. To validate management’s estimate, the Company also considered opinions from qualified real estate professionals and local real estate brokers and, in some cases, obtained third party appraisals. The estimated selling costs range from 5.0% to 6.5% of the property sales price. Liabilities, including estimated costs associated with implementing and completing the Plan, are measured in accordance with U.S. GAAP that otherwise applies to those liabilities. The Company has also recorded the estimated development costs to be incurred to prepare the assets for sale as well as the estimated holding costs to be incurred until the projected sale date and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company and estimated reserves for contingencies. When estimating development costs, the Company considered third party construction contracts and estimates of costs to complete based on construction status, progress and projected completion timing. Estimated development costs also include the costs of design and furnishings necessary to prepare and stage the homes for marketing as well as an accrual for warranty claims. Holding cost estimates consider property taxes, insurance, utilities, maintenance and other costs to be incurred until the sale of the property is closed. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company. These estimated amounts are presented in the accompanying consolidated statements of net assets in liquidation. All changes in the estimated liquidation value of the Company’s real estate held for sale, or other assets and liabilities are reflected as a change to the Company’s net assets in liquidation. The Company does not record any amount from the future settlement of unresolved Causes of Action or recoveries of Fair Funds in the accompanying consolidated financial statements since they cannot be reasonably estimated. The amount recovered may be material to the Company’s net assets in liquidation. On a quarterly basis, the Company reviews the estimated net realizable values, liquidation costs and the estimated date of the completion of the liquidation of the Company and records any significant changes. The Company will also revalue an asset when it is under contract for sale and the buyer’s contingencies have been removed. During the period when this occurs, the carrying value of the asset and the estimated closing and other costs will be adjusted, if necessary. If the Company has a change in its plan for the disposition of an asset, the carrying value will be adjusted to reflect this change in the period that the change is approved. The change in value may include the accrued liquidation costs related to the asset. Other Assets The Company recognizes recoveries from the settlement of unresolved Causes of Action when an agreement is executed and collectability is reasonably assured. An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. Insurance claims are recognized when the insurance company accepts the claim or if a claim is pending and the recoverable amount can be estimated. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. The Forfeited Assets (Note 7) received from the United States Department of Justice (the “DOJ”), other than cash, have been recorded at their estimated net realizable value. In addition, the Company recognizes other amounts to be received based on contractual terms or when the amounts to be received are certai n. Accrued Liquidation Costs The Company accrues for estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs of the single-family homes, including construction and other project related costs, architectural and engineering, project management, city fees, bond payments (net of refunds), furnishings, marketing, estimated reserves for potential warranty claims and contingent liabilities and other costs; (b) estimated holding costs, including property taxes, insurance, maintenance, utilities and other; and (c) estimated general and administrative costs including payroll, legal and other professional fees, trustee and board fees, rent and other office related expenses, and other general and administrative costs to operate the Company. Cash Equivalents The Company considers short-term investments that have a maturity date of ninety days or less at the time of investment to be a cash equivalent. The Company’s cash equivalents include deposits with financial institutions that are insured by the Federal Deposit Insurance Corporation (the “FDIC”). Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and restricted cash. At times, balances in any one financial institution may exceed the FDIC insurance limits. The Company mitigates this risk by depositing its cash, cash equivalents and restricted cash in high-credit quality financial institutions. In addition, the Company uses strategies to reduce deposit balances at any one financial institution consistent with FDIC insurance limits. Income Taxes The Trust is intended to be treated as a grantor trust for income tax purposes and, accordingly, is not subject to federal or state income tax on any income earned or gain recognized by the Trust. The Trust’s beneficiaries will be treated as the owner of a pro rata portion of each asset, including cash and each liability received by and held by the Trust. Each beneficiary will be required to report on his or her federal and state income tax return his or her pro rata share of taxable income, including gains and losses recognized by the Trust. Accordingly, there is no provision for federal or state income taxes recorded in the accompanying consolidated financial statements. The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in the consolidated financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provision for uncertain income tax positions has been recorded in the consolidated financial statements. Net Assets in Liquidation - Restricted for Qualifying Victims 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. |
Real Estate Assets Held for Sal
Real Estate Assets Held for Sale | 6 Months Ended |
Dec. 31, 2022 | |
Real Estate Assets Held for Sale [Abstract] | |
Real Estate Assets Held for Sale | 3) Real Estate Assets Held for Sale The Company’s real estate assets held for sale as of December 31, 2022 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 Single-family home 1 $ 28,000 $ (1,680 ) $ 26,320 1 $ 28,000 $ (1,680 ) $ 26,320 Other real estate assets: Secured loans 2 950 - 950 2 972 (40 ) 932 Other properties 2 2,450 (279 ) 2,171 2 2,000 (190 ) 1,810 Subtotal 4 3,400 (279 ) 3,121 4 2,972 (230 ) 2,742 Total 5 $ 31,400 $ (1,959 ) $ 29,441 5 $ 30,972 $ (1,910 ) $ 29,062 As of December the single-family home was listed for sale and is located in the Los Angeles, California area. The two loans are secured by properties located in the state of Ohio and the state of Connecticut. The other properties are located in the state of Hawaii and the state of New York. As of December the property located in the state of New York was under contract. Although the contingencies relating to this pending sale have been removed, no assurance can be given that the sale will close. During the three months ended December , the Company did not sell any real estate assets. During the three months ended December 31, 2021, the Company sold two single-family homes and settled secured loan for net proceeds of approximately $21,236,000. During the months ended December the Company did not sell any real estate assets. During the months ended December the Company sold single-family homes and settled secured loan for net proceeds of approximately |
Restricted Cash
Restricted Cash | 6 Months Ended |
Dec. 31, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | 4) Restricted Cash The Company’s restricted cash as of December 31, 2022, with comparative information as of June 30, 2022, is as follows ($ in thousands) (unaudited): 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 1,221 3,726 Total restricted cash $ 4,316 $ 6,121 |
Other Assets
Other Assets | 6 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | 5) Other Assets The Company’s other assets as of December 31, 2022, with comparative information as of June 30, 2022, are as follows ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Forfeited Assets (Note 7) $ 542 $ 1,258 Settlement installment receivables, net (a) 405 756 Escrow receivables (b) 20 3,420 Other 190 391 Total other assets $ 1,157 $ 5,825 (a) The allowance for uncollectible settlement installment receivables was approximately $33,000 and $7,000 as of December 31, 2022 and June 30, 2022, respectively. (b) Escrow receivables as of December 31, 2022 relate to one single-family home that was sold during the year ended June 30, 2022. Escrow receivables as of June 30, 2022 relate to two single-family homes that were sold during the year ended June 30, 2022 and one single-family home sold prior to June 30, 2021. Amounts are typically released upon the completion of punch list items and/or obtaining a certificate of occupancy |
Accrued Liquidation Costs
Accrued Liquidation Costs | 6 Months Ended |
Dec. 31, 2022 | |
Accrued Liquidation Costs [Abstract] | |
Accrued Liquidation Costs | 6) Accrued Liquidation Costs The following is a summary of the items included in accrued liquidation costs as of December 31, 2022, with comparative information as of June 30, 2022 ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Development costs: Construction warranty $ 4,184 $ 4,184 Construction costs 1,953 4,331 Indirect costs 102 170 Bond refunds (388 ) (506 ) Total development costs 5,851 8,179 Holding costs: Property tax 681 771 Insurance 325 388 Maintenance, utilities and other 195 428 Total holding costs 1,201 1,587 General and administrative costs: Legal and other professional fees 8,648 12,377 Directors and officers insurance 2,508 2,508 Payroll and payroll-related 2,484 7,989 Board fees and expenses 495 630 State, local and other taxes 330 331 Other 680 936 Total general and administrative costs 15,145 24,771 Total accrued liquidation costs $ 22,197 $ 34,537 |
Forfeited Assets - Restricted f
Forfeited Assets - Restricted for Qualifying Victims | 6 Months Ended |
Dec. 31, 2022 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets - Restricted for Qualifying Victims | 7) Forfeited Assets - The Trust entered into a resolution agreement with the DOJ which provided that the Trust would receive the assets forfeited (“Forfeited Assets”) by Robert and Jeri Shapiro. The agreement provided for the release of specified Forfeited Assets by the DOJ to the Trust and for the Trust to liquidate those assets and distribute the net sale proceeds to Qualifying Victims. Qualifying Victims include the vast majority of Trust beneficiaries (specifically, all former holders of allowed Class 3 and 5 claims and their permitted assigns), but do not include former holders of Class 4 claims. Distributions to Qualifying Victims are to be allocated pro-rata based on their net allowed claims without considering the (i) 5% enhancement for contributing their causes of action and (ii) 72.5% Class 5 coefficient. In March 2021, the Trust received certain Forfeited Assets from the DOJ, including cash, wine, jewelry, handbags, clothing, shoes, art, gold, an automobile and other assets. The Company recorded the total estimated net realizable value of the Forfeited Assets of approximately $3,459,000. During the three and six months ended December 31, 2022, the Company sold the automobile, some of the jewelry, handbags, clothing, shoes and art. During the year ended June 30, 2022, the Company sold the wine and gold and some of the handbags, clothing and shoes. The Forfeited Assets included in the Company’s December 31, 2022 and June 30, 2022 consolidated financial statements are as follows ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Restricted cash (Note 4) $ 3,095 $ 2,395 Other assets (Note 5) 542 1,258 Accrued liquidation costs - primarily legal and professional fees (154 ) (168 ) Net assets in liquidation - restricted for Qualifying Victims $ 3,483 $ 3,485 |
Net Change In Assets and Liabil
Net Change In Assets and Liabilities | 6 Months Ended |
Dec. 31, 2022 | |
Net Change in Assets and Liabilities [Abstract] | |
Net Change in Assets and Liabilities | 8) Net Change In Assets and Liabilities Restricted for Qualifying Victims T he following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2022 ($ in thousands) (unaudited) Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 131 - 131 Other assets (136 ) - (136 ) Total assets $ (5 ) $ - $ (5 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (5 ) - (5 ) Total liabilities $ (5 ) $ - $ (5 ) Change in carrying value of assets and liabilities, net $ - $ - $ - The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 389 - 389 Other assets (406 ) 36 (370 ) Total assets $ (17 ) $ 36 $ 19 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (17 ) - (17 ) Total liabilities $ (17 ) $ - $ (17 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 The following provides details of the change in the carrying value of assets and liabilities, net during the six months ended December 31, 2022 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 700 - 700 Other assets (716 ) - (716 ) Total assets $ (16 ) $ - $ (16 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (14 ) - (14 ) Total liabilities $ (14 ) $ - $ (14 ) Change in carrying value of assets and liabilities, net $ (2 ) $ - $ (2 ) The following provides details of the change in the carrying value of assets and liabilities, net during the six months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 370 - 370 Other assets (406 ) 36 (370 ) Total assets $ (36 ) $ 36 $ - Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (36 ) - (36 ) Total liabilities $ (36 ) $ - $ (36 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 All Interestholders The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2022 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ (10 ) $ 401 $ 391 Cash and cash equivalents (3,999 ) - (3,999 ) Restricted cash (1 ) - (1 ) Other assets (511 ) 1 (510 ) Total assets $ (4,521 ) $ 402 $ (4,119 ) Accounts payable and accrued liabilities $ (8 ) $ 118 $ 110 Accrued liquidation costs (4,594 ) (871 ) (5,465 ) Total liabilities $ (4,602 ) $ (753 ) $ (5,355 ) Change in carrying value of assets and liabilities, net $ 81 $ 1,155 $ 1,236 The following provides details of the distributions (declared) reversed, net during the three months ended December 31, 2022 ($ in thousands) (unaudited): Distributions declared $ - Distributions reversed - Distributions declared, net $ - Distributions payable decreased by approximately $6,000 during the three months ended December 31, 2022. The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ (21,247 ) $ 5,289 $ (15,958 ) Cash and cash equivalents 13,547 - 13,547 Restricted cash - - - 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 The following provides details of the distributions (declared) reversed, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Distributions declared $ (40,017 ) Distributions reversed 191 Distributions declared, net $ (39,826 ) Distributions payable increased by approximately $618,000 during the three months ended December 31, 2021 The following provides details of the change in the carrying value of assets and liabilities, net during the six December 31, 2022 Cash Remeasure- Activities ment Total Real estate assets, net $ (22 ) $ 401 $ 379 Cash and cash equivalents (6,539 ) - (6,539 ) Restricted cash 1 - 1 Other assets (3,843 ) (109 ) (3,952 ) Total assets $ (10,403 ) $ 292 $ (10,111 ) Accounts payable and accrued liabilities $ (33 ) $ 127 $ 94 Accrued liquidation costs (11,074 ) (1,252 ) (12,326 ) Total liabilities $ (11,107 ) $ (1,125 ) $ (12,232 ) Change in carrying value of assets and liabilities, net $ 704 $ 1,417 $ 2,121 The following provides details of the distributions (declared) reversed, net during the six Distributions declared $ - Distributions reversed 2,638 Distributions declared, net $ 2,638 Distributions payable decreased by approximately $67,547,000 during the six December 31, 2022 The following provides details of the change in the carrying value of assets and liabilities, net during the six Cash Remeasure- Activities ment Total Real estate assets, net $ (63,701 ) $ 8,254 $ (55,447 ) Cash and cash equivalents 48,350 - 48,350 Restricted cash - - - 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 The following provides details of the distributions (declared) reversed, net during the six Distributions declared $ (40,017 ) Distributions reversed 289 Distributions declared, net $ (39,728 ) Distributions payable increased by approximately $481,000 during the six months ended December 31, 2021 |
Credit Agreement
Credit Agreement | 6 Months Ended |
Dec. 31, 2022 | |
Credit Agreement [Abstract] | |
Credit Agreement | 9) Credit Agreement The Company does not currently have any outstanding credit agreements. On May 16, 2022, the Company terminated its prior credit agreement. Also, the Company never had outstanding borrowings on its credit agreement. |
Beneficial Interests
Beneficial Interests | 6 Months Ended |
Dec. 31, 2022 | |
Beneficial Interests [Abstract] | |
Beneficial Interests | 10) Beneficial Interests The following table summarizes the Liquidation Trust Interests (rounded) for the six months ended December 31, 2022 and 2021 (unaudited): For the Six Months Ended December 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,513,535 675,617 11,512,855 654,784 Allowed claims 1,348 - 302 - 5 67 - - - Settlement of claims by cancelling Liquidation Trust Interests (760 ) - (1,392 ) (167 ) Outstanding at end of period 11,514,190 675,617 11,511,765 654,617 Of the 11,514,190 Class A Interests outstanding at December 31, 2022, 11,436,259 are held by Qualifying Victims (Note 7). At the Plan Effective Date, certain claims were disputed. As those disputed claims are resolved, additional Class A Interests and (if applicable) Class B Interests are issued on account of allowed claims or Class A Interests and (if applicable) Class B Interests are cancelled. No Class A Interests or Class B Interests are issued on account of disallowed claims. The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the six months ended December 31, 2022 and 2021 (unaudited): For the Six Months Ended December 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 90,793 333 124,609 5,011 Allowed claims (1,348 ) - (302 ) - 5 - - - - Disallowed claims (75,570 ) - (10,547 ) - Reserved for unresolved claims at end of period 13,875 333 113,760 5,011 Of the 13,875 Class A Interests relating to unresolved claims at December 31, 2022, 1,880 would be held by Qualifying Victims (Note 7). |
Distributions
Distributions | 6 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
Distributions | 11) Distributions The Plan provides for a distribution waterfall that specifies the priority and manner of distribution of available cash to all Interestholders, excluding distributions of the net sales proceeds from Forfeited Assets (Note 7). Distributions are to be made (a) to the Class A Interests until they have received distributions of $75.00 per Class A Interest; thereafter (b) to the Class B Interests until they have received distributions of $75.00 per Class B Interest; thereafter (c) to each Liquidation Trust Interest (whether a Class A Interests or Class B Interest) until the aggregate of all distributions made pursuant to this clause equals an amount equivalent to interest, at a per annum fixed rate of 10%, compounded annually Interests No distributions were declared or paid during the three months ended December 31, 2022. During the three months ended December 31, 2021, one distribution was declared and paid ($ in millions, except for $ per Class A Interest): 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 One distribution was paid during the six months ended December 31, 2022 relating to the tenth distribution and another distribution was declared and paid during the six months ended December 31, 2021, relating to the eighth distribution ($ in millions, except for $ per Class A Interest): 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 a) For every distribution, a deposit is made into a restricted cash account for amounts (a) payable for Class A Interests that may be issued in the future upon the allowance of unresolved claims, (b) in respect of Class A Interests issued on account of recently allowed claims (c) for holders of Class A Interests who failed to cash distribution checks mailed in respect of prior distributions (d) for distributions that were withheld due to pending avoidance actions and (e) for holders of Class A Interests for which the Trust is waiting for further beneficiary information. During the three months ended December 31, 2022 and 2021, as (a) claims were resolved, (b) claims were recently allowed, (c) addresses for holders of uncashed distribution checks were obtained, (d) pending avoidance actions were resolved and (e) further beneficiary information was received, distributions of approximately $6,000 and $75,000, respectively, and during the six months ended December 31, 2022 and 2021, approximately $657,000 and $113,000, respectively, were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amount. During the three months ended December 31, 2022 and 2021, as a result of claims being disallowed or Class A Interests being cancelled, approximately $0 and $191,000, respectively, and during the six months ended December 31, 2022 and 2021, approximately $2,638,000 and $289,000 were released from the restricted cash account and distributions payable were reduced by the same amount. As a result of distribution checks that had not been cashed within 180 days of their issuance, Interestholders were deemed to have forfeited their rights to reserved and future Class A Interest distributions. During the three and six months ended December 31, 2022, some Interestholders that had previously been deemed to have been forfeited their rights to receive Class A Interest distributions had responded and therefore approximately $0 and $12,000, respectively, was added to the restricted cash account and distributions payable were increased by the same amount. During the three and six months ended December 31, 2021, no Interestholders were deemed to have forfeited their rights to reserved and future Class A distributions. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12) Related Party Transactions Terry Goebel, a member of the Trust Supervisory Board, is president and a principal owner of G3 Group LA (G3), a construction firm specializing in the development of high-end luxury residences. G3 is owned by Terry Goebel and his son Kelly Goebel. As of December 31, 2022, the Company was under contract with G3 for the development of one single-family home in Los Angeles, California. As of December 31, 2022 and June 30, 2022 the remaining amounts payable under this contract were approximately respectively. and during the six months ended December 31, 2022 and 2021, approximately, $0 and $3,176,000 were paid by the Company to G3 related to this contract. The Liquidation Trustee of the Trust is entitled to receive 5% of the total gross amount recovered by the Trust from the pursuit of the Causes of Action. During the three months ended December 31 were accrued as amounts due to the Liquidation Trustee, respectively. As of December 31 respectively, were payable to the Liquidation Trustee. These amounts are included in accounts payable and accrued liabilities in the accompanying consolidated statements of net assets in liquidation. during the six months ended December 31, 2022 and 2021, approximately, $0 and $184,000, respectively, In November 2019, the Trust entered into an arrangement with Akerman LLP, a law firm based in Miami, Florida of which the Liquidation Trustee is a partner, for the provision, at the option of the Trust on an as-needed basis, of e-discovery and related litigation support services in connection with the Trust’s prosecution of the Causes of Action. Under the arrangement, the Trust is charged for the services at scheduled rates per task which, depending on specific task, include flat rates, rates based on volume of data processed, rates based on the number of data users, the hourly rates of Akerman LLP personnel, or other rates. During the three months ended December 31, 2022 and 2021, respectively, approximately $79,000 and $107,000, respectively, and during the six months ended December 31, 2022 and 2021, respectively, approximately payables as of December 31, 2022 and June 30, 2022 The executive officers of the Wind-Down Entity are entitled to a bonus based on the Wind-Down Entity achieving certain specified cumulative amounts of distributions to the Trust. Based on the carrying amounts of the net assets in liquidation included in the accompanying consolidated statements of net assets in liquidation, approximately $0 and $3,000,000 were a ccrued as of December 31, 2022 and June 30, 2022, respectively, as |
Causes of Action
Causes of Action | 6 Months Ended |
Dec. 31, 2022 | |
Causes of Action [Abstract] | |
Causes of Action | 13) Causes of Action D uring the three and six months ended December 31, 2022 and 2021, the Company recorded the following amounts from the settlement of Causes of Action ($ in thousands): 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 The Company also recorded liabilities of 5% of the settlement as amounts payable to the Liquidation Trustee and an allowance for uncollectible settlement installment receivables. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14) Commitments and Contingencies As of December 31, 2022, the Company had construction contracts under which approximately $400,000 was unpaid. The Company had a lease for its office space that expired on August 31, 2021. On June 4, 2021, the Company entered into a new office lease at a different location. The new lease was for the period from August 1, 2021 through July 31, 2022 and third The monthly base rent is approximately $4,000 plus common area maintenance charges. The amount of rent paid, including common area maintenance and parking charges, during the months ended December and was approximately and respectively, and during the six months ended December 31, 2022 and 2021, was approximately $25,000 and $51,000, respectively. The Company has one additional option to extend the lease. The Company has part-time employment agreements with executive officers through December 31, 2023. The Company is not presently the defendant in any mat |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15) Subsequent Events The Company evaluates subsequent events up until the date the unaudited consolidated financial statements are issued. Distributions As a result of distribution checks that had not been cashed within 180 days of their issuance, Interestholders were deemed to have forfeited their rights to reserved and future Class A Interest distributions. During the period from January 1, 2023 through February 10, 2023, an Interestholder that had previously been deemed to have been forfeited their rights to receive Class A Interest distributions had responded and therefore approximately $14,000 was added to the restricted cash account and distributions payable were increased by the same amount. During the period from January 1, 2023 through February 10, 2023, as (a) claims were resolved, (b) claims were recently allowed, (c) addresses for holders of uncashed distribution checks were obtained, (d) pending avoidance actions were resolved and (e) further beneficiary information was received, distributions of approximately $14,000 were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amount. Sales/Settlement of Real Estate Assets On January 30, 2023, the Company entered into an agreement to sell its last single-family home remaining in the Company’s real asset portfolio. The closing of the sale is subject to a number of contingencies, including the satisfactory completion of the purchaser’s due diligence. No assurance can be given that all such contingencies will be satisfied or that the closing of the sale will occur. Neither the Company nor any of its affiliates has any material relationship with the purchaser other than in respect of the transaction. On January 3, 2023, the Company settled one secured loan for approximately $785,000. Forfeited Assets During the period from January 1, 2023 through February 10, 2023, the Company realized net proceeds of approximately $16,000 from the sale of Forfeited Assets. On February 7, 2023, the Trust was informed that the DOJ had received additional Forfeited Assets from a co-defendant of Robert Shapiro and that the DOJ would like to release these Forfeited Assets to the Trust. The Trust has not entered into an agreement with the DOJ for the release of these Forfeited Assets. It is expected that the proceeds from these Forfeited Assets would be distributed to Qualifying Victims (see Note 7). The Trust is unable to estimate the amount and timing of the release of these Forfeited Assets, if any. Other Refunds During the period from January 1, 2023 through February 10, 2023, the Company received approximately $23,000 of property tax refunds. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. These consolidated financial statements have been presented in accordance with Accounting Standards Codification (“ASC”) Subtopic 205-30, “Liquidation Basis of Accounting,” as amended by Accounting Standards Update (“ASU”) No. 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting.” The June 30, 2022 consolidated statement of net assets in liquidation included herein was derived from the audited consolidated financial statements but does not include all disclosures or notes required by U.S. GAAP for complete financial statements. |
Consolidation | All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the carrying amounts of assets and liabilities are revised in the period that available information supports a change in the carrying amount. |
Liquidation Basis of Accounting | Liquidation Basis of Accounting Under the liquidation basis of accounting, all assets are recorded at their estimated net realizable value or liquidation value, which represents the estimated amount of net cash that will be received upon the disposition of the assets (on an undiscounted basis). The measurement of real estate assets held for sale is based on current contracts (if any), estimates and other indications of sales value, net of estimated selling costs. To determine the value of real estate assets held for sale, the Company considered the three traditional approaches to value (cost, income and sales comparison) commonly used by the real estate appraisal community. The applicability and relevancy of each valuation approach as applied may differ by asset. In most cases, the sales comparison approach was accorded the greatest weight. This approach compares a property to other properties with similar characteristics that have recently sold. To validate management’s estimate, the Company also considered opinions from qualified real estate professionals and local real estate brokers and, in some cases, obtained third party appraisals. The estimated selling costs range from 5.0% to 6.5% of the property sales price. Liabilities, including estimated costs associated with implementing and completing the Plan, are measured in accordance with U.S. GAAP that otherwise applies to those liabilities. The Company has also recorded the estimated development costs to be incurred to prepare the assets for sale as well as the estimated holding costs to be incurred until the projected sale date and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company and estimated reserves for contingencies. When estimating development costs, the Company considered third party construction contracts and estimates of costs to complete based on construction status, progress and projected completion timing. Estimated development costs also include the costs of design and furnishings necessary to prepare and stage the homes for marketing as well as an accrual for warranty claims. Holding cost estimates consider property taxes, insurance, utilities, maintenance and other costs to be incurred until the sale of the property is closed. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company. These estimated amounts are presented in the accompanying consolidated statements of net assets in liquidation. All changes in the estimated liquidation value of the Company’s real estate held for sale, or other assets and liabilities are reflected as a change to the Company’s net assets in liquidation. The Company does not record any amount from the future settlement of unresolved Causes of Action or recoveries of Fair Funds in the accompanying consolidated financial statements since they cannot be reasonably estimated. The amount recovered may be material to the Company’s net assets in liquidation. On a quarterly basis, the Company reviews the estimated net realizable values, liquidation costs and the estimated date of the completion of the liquidation of the Company and records any significant changes. The Company will also revalue an asset when it is under contract for sale and the buyer’s contingencies have been removed. During the period when this occurs, the carrying value of the asset and the estimated closing and other costs will be adjusted, if necessary. If the Company has a change in its plan for the disposition of an asset, the carrying value will be adjusted to reflect this change in the period that the change is approved. The change in value may include the accrued liquidation costs related to the asset. |
Other Assets | Other Assets The Company recognizes recoveries from the settlement of unresolved Causes of Action when an agreement is executed and collectability is reasonably assured. An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. Insurance claims are recognized when the insurance company accepts the claim or if a claim is pending and the recoverable amount can be estimated. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. The Forfeited Assets (Note 7) received from the United States Department of Justice (the “DOJ”), other than cash, have been recorded at their estimated net realizable value. In addition, the Company recognizes other amounts to be received based on contractual terms or when the amounts to be received are certai n. |
Accrued Liquidation Costs | Accrued Liquidation Costs The Company accrues for estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs of the single-family homes, including construction and other project related costs, architectural and engineering, project management, city fees, bond payments (net of refunds), furnishings, marketing, estimated reserves for potential warranty claims and contingent liabilities and other costs; (b) estimated holding costs, including property taxes, insurance, maintenance, utilities and other; and (c) estimated general and administrative costs including payroll, legal and other professional fees, trustee and board fees, rent and other office related expenses, and other general and administrative costs to operate the Company. |
Cash Equivalents | Cash Equivalents The Company considers short-term investments that have a maturity date of ninety days or less at the time of investment to be a cash equivalent. The Company’s cash equivalents include deposits with financial institutions that are insured by the Federal Deposit Insurance Corporation (the “FDIC”). |
Restricted Cash | Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and restricted cash. At times, balances in any one financial institution may exceed the FDIC insurance limits. The Company mitigates this risk by depositing its cash, cash equivalents and restricted cash in high-credit quality financial institutions. In addition, the Company uses strategies to reduce deposit balances at any one financial institution consistent with FDIC insurance limits. |
Income Taxes | Income Taxes The Trust is intended to be treated as a grantor trust for income tax purposes and, accordingly, is not subject to federal or state income tax on any income earned or gain recognized by the Trust. The Trust’s beneficiaries will be treated as the owner of a pro rata portion of each asset, including cash and each liability received by and held by the Trust. Each beneficiary will be required to report on his or her federal and state income tax return his or her pro rata share of taxable income, including gains and losses recognized by the Trust. Accordingly, there is no provision for federal or state income taxes recorded in the accompanying consolidated financial statements. The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in the consolidated financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provision for uncertain income tax positions has been recorded in the consolidated financial statements. |
Net Assets in Liquidation - Restricted for Qualifying Victims | Net Assets in Liquidation - Restricted for Qualifying Victims 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. |
Real Estate Assets Held for S_2
Real Estate Assets Held for Sale (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Real Estate Assets Held for Sale [Abstract] | |
Real Estate Assets Held for Sale | The Company’s real estate assets held for sale as of December 31, 2022 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 Single-family home 1 $ 28,000 $ (1,680 ) $ 26,320 1 $ 28,000 $ (1,680 ) $ 26,320 Other real estate assets: Secured loans 2 950 - 950 2 972 (40 ) 932 Other properties 2 2,450 (279 ) 2,171 2 2,000 (190 ) 1,810 Subtotal 4 3,400 (279 ) 3,121 4 2,972 (230 ) 2,742 Total 5 $ 31,400 $ (1,959 ) $ 29,441 5 $ 30,972 $ (1,910 ) $ 29,062 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | The Company’s restricted cash as of December 31, 2022, with comparative information as of June 30, 2022, is as follows ($ in thousands) (unaudited): 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 1,221 3,726 Total restricted cash $ 4,316 $ 6,121 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | The Company’s other assets as of December 31, 2022, with comparative information as of June 30, 2022, are as follows ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Forfeited Assets (Note 7) $ 542 $ 1,258 Settlement installment receivables, net (a) 405 756 Escrow receivables (b) 20 3,420 Other 190 391 Total other assets $ 1,157 $ 5,825 (a) The allowance for uncollectible settlement installment receivables was approximately $33,000 and $7,000 as of December 31, 2022 and June 30, 2022, respectively. (b) Escrow receivables as of December 31, 2022 relate to one single-family home that was sold during the year ended June 30, 2022. Escrow receivables as of June 30, 2022 relate to two single-family homes that were sold during the year ended June 30, 2022 and one single-family home sold prior to June 30, 2021. Amounts are typically released upon the completion of punch list items and/or obtaining a certificate of occupancy |
Accrued Liquidation Costs (Tabl
Accrued Liquidation Costs (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Accrued Liquidation Costs [Abstract] | |
Summary of Accrued Liquidation Costs | The following is a summary of the items included in accrued liquidation costs as of December 31, 2022, with comparative information as of June 30, 2022 ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Development costs: Construction warranty $ 4,184 $ 4,184 Construction costs 1,953 4,331 Indirect costs 102 170 Bond refunds (388 ) (506 ) Total development costs 5,851 8,179 Holding costs: Property tax 681 771 Insurance 325 388 Maintenance, utilities and other 195 428 Total holding costs 1,201 1,587 General and administrative costs: Legal and other professional fees 8,648 12,377 Directors and officers insurance 2,508 2,508 Payroll and payroll-related 2,484 7,989 Board fees and expenses 495 630 State, local and other taxes 330 331 Other 680 936 Total general and administrative costs 15,145 24,771 Total accrued liquidation costs $ 22,197 $ 34,537 |
Forfeited Assets - Restricted_2
Forfeited Assets - Restricted for Qualifying Victims (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets Included in Consolidated Financial Statements | The Forfeited Assets included in the Company’s December 31, 2022 and June 30, 2022 consolidated financial statements are as follows ($ in thousands) (unaudited): December 31, 2022 June 30, 2022 Restricted cash (Note 4) $ 3,095 $ 2,395 Other assets (Note 5) 542 1,258 Accrued liquidation costs - primarily legal and professional fees (154 ) (168 ) Net assets in liquidation - restricted for Qualifying Victims $ 3,483 $ 3,485 |
Net Change In Assets and Liab_2
Net Change In Assets and Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Net Change in Assets and Liabilities [Abstract] | |
Details of Change in Carrying Value of Assets and Liabilities, Net | T he following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2022 ($ in thousands) (unaudited) Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 131 - 131 Other assets (136 ) - (136 ) Total assets $ (5 ) $ - $ (5 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (5 ) - (5 ) Total liabilities $ (5 ) $ - $ (5 ) Change in carrying value of assets and liabilities, net $ - $ - $ - The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 389 - 389 Other assets (406 ) 36 (370 ) Total assets $ (17 ) $ 36 $ 19 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (17 ) - (17 ) Total liabilities $ (17 ) $ - $ (17 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 The following provides details of the change in the carrying value of assets and liabilities, net during the six months ended December 31, 2022 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 700 - 700 Other assets (716 ) - (716 ) Total assets $ (16 ) $ - $ (16 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (14 ) - (14 ) Total liabilities $ (14 ) $ - $ (14 ) Change in carrying value of assets and liabilities, net $ (2 ) $ - $ (2 ) The following provides details of the change in the carrying value of assets and liabilities, net during the six months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 370 - 370 Other assets (406 ) 36 (370 ) Total assets $ (36 ) $ 36 $ - Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (36 ) - (36 ) Total liabilities $ (36 ) $ - $ (36 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2022 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ (10 ) $ 401 $ 391 Cash and cash equivalents (3,999 ) - (3,999 ) Restricted cash (1 ) - (1 ) Other assets (511 ) 1 (510 ) Total assets $ (4,521 ) $ 402 $ (4,119 ) Accounts payable and accrued liabilities $ (8 ) $ 118 $ 110 Accrued liquidation costs (4,594 ) (871 ) (5,465 ) Total liabilities $ (4,602 ) $ (753 ) $ (5,355 ) Change in carrying value of assets and liabilities, net $ 81 $ 1,155 $ 1,236 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Cash Remeasure- Activities ment Total Real estate assets, net $ (21,247 ) $ 5,289 $ (15,958 ) Cash and cash equivalents 13,547 - 13,547 Restricted cash - - - 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 The following provides details of the change in the carrying value of assets and liabilities, net during the six December 31, 2022 Cash Remeasure- Activities ment Total Real estate assets, net $ (22 ) $ 401 $ 379 Cash and cash equivalents (6,539 ) - (6,539 ) Restricted cash 1 - 1 Other assets (3,843 ) (109 ) (3,952 ) Total assets $ (10,403 ) $ 292 $ (10,111 ) Accounts payable and accrued liabilities $ (33 ) $ 127 $ 94 Accrued liquidation costs (11,074 ) (1,252 ) (12,326 ) Total liabilities $ (11,107 ) $ (1,125 ) $ (12,232 ) Change in carrying value of assets and liabilities, net $ 704 $ 1,417 $ 2,121 The following provides details of the change in the carrying value of assets and liabilities, net during the six Cash Remeasure- Activities ment Total Real estate assets, net $ (63,701 ) $ 8,254 $ (55,447 ) Cash and cash equivalents 48,350 - 48,350 Restricted cash - - - 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, Net | The following provides details of the distributions (declared) reversed, net during the three months ended December 31, 2022 ($ in thousands) (unaudited): Distributions declared $ - Distributions reversed - Distributions declared, net $ - The following provides details of the distributions (declared) reversed, net during the three months ended December 31, 2021 ($ in thousands) (unaudited): Distributions declared $ (40,017 ) Distributions reversed 191 Distributions declared, net $ (39,826 ) The following provides details of the distributions (declared) reversed, net during the six Distributions declared $ - Distributions reversed 2,638 Distributions declared, net $ 2,638 The following provides details of the distributions (declared) reversed, net during the six Distributions declared $ (40,017 ) Distributions reversed 289 Distributions declared, net $ (39,728 ) |
Beneficial Interests (Tables)
Beneficial Interests (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Beneficial Interests [Abstract] | |
Liquidation Trust Interests | The following table summarizes the Liquidation Trust Interests (rounded) for the six months ended December 31, 2022 and 2021 (unaudited): For the Six Months Ended December 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,513,535 675,617 11,512,855 654,784 Allowed claims 1,348 - 302 - 5 67 - - - Settlement of claims by cancelling Liquidation Trust Interests (760 ) - (1,392 ) (167 ) Outstanding at end of period 11,514,190 675,617 11,511,765 654,617 |
Unresolved Claims Relating to Liquidation Trust Interests | The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the six months ended December 31, 2022 and 2021 (unaudited): For the Six Months Ended December 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 90,793 333 124,609 5,011 Allowed claims (1,348 ) - (302 ) - 5 - - - - Disallowed claims (75,570 ) - (10,547 ) - Reserved for unresolved claims at end of period 13,875 333 113,760 5,011 |
Distributions (Tables)
Distributions (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
Distributions Declared and Paid | No distributions were declared or paid during the three months ended December 31, 2022. During the three months ended December 31, 2021, one distribution was declared and paid ($ in millions, except for $ per Class A Interest): 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 One distribution was paid during the six months ended December 31, 2022 relating to the tenth distribution and another distribution was declared and paid during the six months ended December 31, 2021, relating to the eighth distribution ($ in millions, except for $ per Class A Interest): 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 a) |
Causes of Action (Tables)
Causes of Action (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Causes of Action [Abstract] | |
Settlement of Causes of Action | D uring the three and six months ended December 31, 2022 and 2021, the Company recorded the following amounts from the settlement of Causes of Action ($ in thousands): 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 |
Formation and Description of _2
Formation and Description of Business (Details) | 6 Months Ended | |
Dec. 31, 2022 Asset Class Segment | Feb. 15, 2019 USD ($) Subsidiary | |
Formation [Abstract] | ||
Cash received for funding initial expenses of operation | $ | $ 5,000,000 | |
Number of wind-down subsidiaries | Subsidiary | 43 | |
Number of classes of liquidation trust interests | Class | 2 | |
Description of Business [Abstract] | ||
Number of reportable segments | Segment | 1 | |
Single-Family Homes [Member] | Los Angeles, California [Member] | ||
Description of Business [Abstract] | ||
Number of real estate assets owned by Wind-Down Subsidiaries | 1 | |
Secured Loans [Member] | Other States [Member] | ||
Description of Business [Abstract] | ||
Number of real estate assets owned by Wind-Down Subsidiaries | 2 | |
Other Properties [Member] | Other States [Member] | ||
Description of Business [Abstract] | ||
Number of real estate assets owned by Wind-Down Subsidiaries | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Estimated Selling Costs [Member] | Dec. 31, 2022 |
Minimum [Member] | |
Liquidation Basis of Accounting [Abstract] | |
Real estate assets held for sale, measurement input | 0.05 |
Maximum [Member] | |
Liquidation Basis of Accounting [Abstract] | |
Real estate assets held for sale, measurement input | 0.065 |
Real Estate Assets Held for S_3
Real Estate Assets Held for Sale (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 USD ($) Asset | Dec. 31, 2021 USD ($) Asset Loan | Dec. 31, 2022 USD ($) Asset | Dec. 31, 2021 USD ($) Asset Loan | Jun. 30, 2022 USD ($) Asset | |
Real Estate Investment Property, Net [Abstract] | |||||
Single-family homes, number of assets | Asset | 1 | 1 | 1 | ||
Single-family homes, gross value | $ 28,000 | $ 28,000 | $ 28,000 | ||
Single-family homes, closing and other costs | (1,680) | (1,680) | (1,680) | ||
Single-family homes, net value | $ 26,320 | $ 26,320 | $ 26,320 | ||
Other real estate assets, number of assets | Asset | 4 | 4 | 4 | ||
Other real estate assets, gross value | $ 3,400 | $ 3,400 | $ 2,972 | ||
Other real estate assets, closing and other costs | (279) | (279) | (230) | ||
Other real estate assets, net value | $ 3,121 | $ 3,121 | $ 2,742 | ||
Real estate assets held for sale, number of assets | Asset | 5 | 5 | 5 | ||
Real estate assets held for sale, gross value | $ 31,400 | $ 31,400 | $ 30,972 | ||
Real estate assets held for sale, closing and other costs | (1,959) | (1,959) | (1,910) | ||
Real estate assets held for sale, net | $ 29,441 | $ 29,441 | $ 29,062 | ||
Net proceeds from sale of real estate | $ 21,236 | $ 63,680 | |||
Number of assets sold | Asset | 0 | 0 | |||
Single-Family Homes [Member] | |||||
Real Estate Investment Property, Net [Abstract] | |||||
Number of assets sold | Asset | 2 | 4 | |||
Secured Loans [Member] | |||||
Real Estate Investment Property, Net [Abstract] | |||||
Other real estate assets, number of assets | Asset | 2 | 2 | 2 | ||
Other real estate assets, gross value | $ 950 | $ 950 | $ 972 | ||
Other real estate assets, closing and other costs | 0 | 0 | (40) | ||
Other real estate assets, net value | $ 950 | $ 950 | $ 932 | ||
Number of loans settled | Loan | 1 | 1 | |||
Other Properties [Member] | |||||
Real Estate Investment Property, Net [Abstract] | |||||
Other real estate assets, number of assets | Asset | 2 | 2 | 2 | ||
Other real estate assets, gross value | $ 2,450 | $ 2,450 | $ 2,000 | ||
Other real estate assets, closing and other costs | (279) | (279) | (190) | ||
Other real estate assets, net value | $ 2,171 | $ 2,171 | $ 1,810 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Restricted Cash [Abstract] | ||
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 | 1,221 | 3,726 |
Total restricted cash | $ 4,316 | $ 6,121 |
Other Assets (Details)
Other Assets (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Property | Jun. 30, 2022 USD ($) Property | Jun. 30, 2021 Property | ||
Other Assets [Abstract] | ||||
Forfeited Assets (Note 7) | $ 542 | $ 1,258 | ||
Settlement installment receivables, net | [1] | 405 | 756 | |
Escrow receivables | [2] | 20 | 3,420 | |
Other | 190 | 391 | ||
Total other assets | 1,157 | 5,825 | ||
Allowance for uncollectible settlement installment receivables | $ 33 | $ 7 | ||
Single-Family Homes [Member] | ||||
Other Assets [Abstract] | ||||
Number of properties with escrow receivables, which were sold in current year | Property | 1 | 2 | ||
Number of properties with escrow receivables, which were sold in prior year | Property | 1 | |||
[1]The allowance for uncollectible settlement installment receivables was approximately $33,000 and $7,000 as of December 31, 2022 and June 30, 2022, respectively.[2]Escrow receivables as of December 31, 2022 relate to one single-family home that was sold during the year ended June 30, 2022. Escrow receivables as of June 30, 2022 relate to two single-family homes that were sold during the year ended June 30, 2022 and one single-family home sold prior to June 30, 2021. Amounts are typically released upon the completion of punch list items and/or obtaining a certificate of occupancy |
Accrued Liquidation Costs (Deta
Accrued Liquidation Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Development costs [Abstract] | ||
Construction warranty | $ 4,184 | $ 4,184 |
Construction costs | 1,953 | 4,331 |
Indirect costs | 102 | 170 |
Bond refunds | (388) | (506) |
Total development costs | 5,851 | 8,179 |
Holding costs [Abstract] | ||
Property tax | 681 | 771 |
Insurance | 325 | 388 |
Maintenance, utilities and other | 195 | 428 |
Total holding costs | 1,201 | 1,587 |
General and administrative costs [Abstract] | ||
Legal and other professional fees | 8,648 | 12,377 |
Directors and officers insurance | 2,508 | 2,508 |
Payroll and payroll-related | 2,484 | 7,989 |
Board fees and expenses | 495 | 630 |
State, local and other taxes | 330 | 331 |
Other | 680 | 936 |
Total general and administrative costs | 15,145 | 24,771 |
Total accrued liquidation costs | $ 22,197 | $ 34,537 |
Forfeited Assets - Restricted_3
Forfeited Assets - Restricted for Qualifying Victims (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | ||
Enhancement percentage for contributing causes of action | 5% | |
Class 5 coefficient percentage | 72.50% | |
Estimated net realizable value of forfeited assets | $ 3,459 | |
Forfeited Assets [Abstract] | ||
Restricted cash (Note 4) | 3,095 | $ 2,395 |
Other assets (Note 5) | 542 | 1,258 |
Accrued liquidation costs - primarily legal and other professional fees | (154) | (168) |
Net assets in liquidation - restricted for Qualifying Victims | $ 3,483 | $ 3,485 |
Net Change In Assets and Liab_3
Net Change In Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Change in carrying value of assets and liabilities, net | $ 0 | $ 36 | $ (2) | $ 36 |
Change in carrying value of assets and liabilities, net | 1,236 | 32,752 | 2,121 | 37,657 |
Distributions Declared, Net [Abstract] | ||||
Distributions declared | 0 | (40,020) | ||
Distributions declared, net | 0 | (39,826) | 2,638 | (39,728) |
Increase (decrease) in distributions payable | (6) | 618 | (67,547) | 481 |
Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 131 | 389 | 700 | 370 |
Other assets | (136) | (370) | (716) | (370) |
Total assets | (5) | 19 | (16) | 0 |
Accounts payable and accrued liabilities | 0 | 0 | 0 | 0 |
Accrued liquidation costs | (5) | (17) | (14) | (36) |
Total liabilities | (5) | (17) | (14) | (36) |
Change in carrying value of assets and liabilities, net | 0 | 36 | (2) | 36 |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Distributions Declared, Net [Abstract] | ||||
Distributions declared, net | 0 | 0 | 0 | 0 |
All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | 391 | (15,958) | 379 | (55,447) |
Cash and cash equivalents | (3,999) | 13,547 | (6,539) | 48,350 |
Restricted cash | (1) | 0 | 1 | 0 |
Other assets | (510) | 25,595 | (3,952) | 25,718 |
Total assets | (4,119) | 23,184 | (10,111) | 18,621 |
Accounts payable and accrued liabilities | 110 | 1,078 | 94 | 1,127 |
Accrued liquidation costs | (5,465) | (10,646) | (12,326) | (20,163) |
Total liabilities | (5,355) | (9,568) | (12,232) | (19,036) |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Change in carrying value of assets and liabilities, net | 1,236 | 32,752 | 2,121 | 37,657 |
Distributions Declared, Net [Abstract] | ||||
Distributions declared | 0 | (40,017) | 0 | (40,017) |
Distributions reversed | 0 | 191 | 2,638 | 289 |
Distributions declared, net | 0 | (39,826) | 2,638 | (39,728) |
Cash Activities [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 131 | 389 | 700 | 370 |
Other assets | (136) | (406) | (716) | (406) |
Total assets | (5) | (17) | (16) | (36) |
Accounts payable and accrued liabilities | 0 | 0 | 0 | 0 |
Accrued liquidation costs | (5) | (17) | (14) | (36) |
Total liabilities | (5) | (17) | (14) | (36) |
Change in carrying value of assets and liabilities, net | 0 | 0 | (2) | 0 |
Cash Activities [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | (10) | (21,247) | (22) | (63,701) |
Cash and cash equivalents | (3,999) | 13,547 | (6,539) | 48,350 |
Restricted cash | (1) | 0 | 1 | 0 |
Other assets | (511) | (307) | (3,843) | (1,007) |
Total assets | (4,521) | (8,007) | (10,403) | (16,358) |
Accounts payable and accrued liabilities | (8) | (184) | (33) | (184) |
Accrued liquidation costs | (4,594) | (8,489) | (11,074) | (17,212) |
Total liabilities | (4,602) | (8,673) | (11,107) | (17,396) |
Change in carrying value of assets and liabilities, net | 81 | 666 | 704 | 1,038 |
Remeasurement [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 | 0 |
Other assets | 0 | 36 | 0 | 36 |
Total assets | 0 | 36 | 0 | 36 |
Accounts payable and accrued liabilities | 0 | 0 | 0 | 0 |
Accrued liquidation costs | 0 | 0 | 0 | 0 |
Total liabilities | 0 | 0 | 0 | 0 |
Change in carrying value of assets and liabilities, net | 0 | 36 | 0 | 36 |
Remeasurement [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets, net | 401 | 5,289 | 401 | 8,254 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 | 0 |
Other assets | 1 | 25,902 | (109) | 26,725 |
Total assets | 402 | 31,191 | 292 | 34,979 |
Accounts payable and accrued liabilities | 118 | 1,262 | 127 | 1,311 |
Accrued liquidation costs | (871) | (2,157) | (1,252) | (2,951) |
Total liabilities | (753) | (895) | (1,125) | (1,640) |
Change in carrying value of assets and liabilities, net | $ 1,155 | $ 32,086 | $ 1,417 | $ 36,619 |
Credit Agreement (Details)
Credit Agreement (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revolving Line of Credit [Member] | |
Line of Credit [Abstract] | |
Line of credit outstanding | $ 0 |
Beneficial Interests (Details)
Beneficial Interests (Details) - shares | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liquidation Trust Interests [Abstract] | ||
Held by qualifying victims (in shares) | 11,436,259 | |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Unresolved claims held by qualifying victims (in shares) | 1,880 | |
Class A [Member] | ||
Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 11,513,535 | 11,512,855 |
Allowed claims (in shares) | 1,348 | 302 |
5% enhancement for certain allowed claims (in shares) | 67 | 0 |
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | (760) | (1,392) |
Outstanding at end of period (in shares) | 11,514,190 | 11,511,765 |
Percentage of enhancement for certain allowed claims | 5% | 5% |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 90,793 | 124,609 |
Allowed claims (in shares) | (1,348) | (302) |
5% enhancement for certain allowed claims (in shares) | 0 | 0 |
Disallowed claims (in shares) | (75,570) | (10,547) |
Outstanding at end of period (in shares) | 13,875 | 113,760 |
Percentage of enhancement for certain allowed claims | 5% | 5% |
Class B [Member] | ||
Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 675,617 | 654,784 |
Allowed claims (in shares) | 0 | 0 |
5% enhancement for certain allowed claims (in shares) | 0 | 0 |
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | 0 | (167) |
Outstanding at end of period (in shares) | 675,617 | 654,617 |
Percentage of enhancement for certain allowed claims | 5% | 5% |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 333 | 5,011 |
Allowed claims (in shares) | 0 | 0 |
5% enhancement for certain allowed claims (in shares) | 0 | 0 |
Disallowed claims (in shares) | 0 | 0 |
Outstanding at end of period (in shares) | 333 | 5,011 |
Percentage of enhancement for certain allowed claims | 5% | 5% |
Distributions (Details)
Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Distributions [Abstract] | |||||
Total declared | $ 0 | $ 40,020 | |||
Paid | 64,190 | 39,140 | |||
Deposits into restricted cash account | 820 | $ 880 | $ 820 | 880 | |
Forfeited distributions, cash released from restricted cash account | 0 | $ 12 | |||
Distributions deemed to have been forfeited | 0 | 0 | |||
Tenth [Member] | |||||
Distributions [Abstract] | |||||
Date declared | [1] | Jun. 15, 2022 | |||
Total declared | [1] | $ 0 | 0 | ||
Paid | [1] | 64,190 | 0 | ||
Deposits into restricted cash account | [1] | $ 820 | 0 | $ 820 | 0 |
Eighth [Member] | |||||
Distributions [Abstract] | |||||
Date declared | Oct. 08, 2021 | Oct. 08, 2021 | |||
Total declared | $ 0 | 40,020 | $ 0 | 40,020 | |
Paid | 0 | 39,140 | 0 | 39,140 | |
Deposits into restricted cash account | $ 0 | 880 | $ 0 | 880 | |
All Net Note Claims [Member] | |||||
Distributions [Abstract] | |||||
Interest, fixed rate | 10% | 10% | |||
Class A [Member] | |||||
Distributions [Abstract] | |||||
Preferential distributions payable per interest (in dollars per share) | $ 75 | $ 75 | |||
Subsequent distributions paid | $ 6 | 75 | $ 657 | 113 | |
Disallowed or cancelled claims, cash released from restricted cash account | $ 0 | $ 191 | $ 2,638 | $ 289 | |
Class A [Member] | Tenth [Member] | |||||
Distributions [Abstract] | |||||
$ per interest (in dollars per share) | [1] | $ 5.63 | |||
Class A [Member] | Eighth [Member] | |||||
Distributions [Abstract] | |||||
$ per interest (in dollars per share) | $ 3.44 | 3.44 | |||
Class B [Member] | |||||
Distributions [Abstract] | |||||
Preferential distributions payable per interest (in dollars per share) | 75 | 75 | |||
Subordinated preferential distributions payable per interest (in dollars per share) | $ 75 | $ 75 | |||
[1]The distribution was declared on June 15, 2022 and paid on July 15, 2022. |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 USD ($) Asset | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Asset | Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | |
Executive Officer [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Accrued amount due to officers | $ 0 | $ 0 | $ 3,000 | ||
Payments for bonuses | 1,200 | $ 692 | 3,373 | $ 692 | |
Liquidation Trustee [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Amount payable to related party | 92 | 92 | 81 | ||
Amount paid under contract | 0 | 184 | $ 0 | 184 | |
Percentage entitled to receive from total gross amount recovered | 5% | ||||
Accrued amount due to related party | $ 2 | 1,262 | $ 9 | 1,311 | |
G3 Group LA [Member] | Single-Family Homes [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Number of real estate assets under contract for development | Asset | 1 | 1 | |||
Amount payable to related party | $ 438 | $ 438 | 438 | ||
Amount paid under contract | 0 | 1,894 | 0 | 3,176 | |
Akerman LLP [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Amount payable to related party | 0 | 0 | $ 0 | ||
Payments for legal services | $ 79 | $ 107 | $ 194 | $ 214 |
Causes of Action (Details)
Causes of Action (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Causes of Action [Abstract] | ||||
Amount from settlement of causes of action | $ 41 | $ 25,244 | $ 231 | $ 26,215 |
Liquidation Trustee [Member] | ||||
Causes of Action [Abstract] | ||||
Percentage of liabilities payable to related party | 5% | 5% | ||
Other Settlement Recoveries [Member] | ||||
Causes of Action [Abstract] | ||||
Amount from settlement of causes of action | $ 41 | 429 | $ 231 | 1,400 |
Comerica Bank [Member] | ||||
Causes of Action [Abstract] | ||||
Amount from settlement of causes of action | $ 0 | $ 24,815 | $ 0 | $ 24,815 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 16, 2022 Option | Jun. 04, 2021 Option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Option | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies [Abstract] | ||||||
Construction contracts unpaid | $ 400 | $ 400 | ||||
Number of options to extend lease | Option | 3 | 2 | 1 | |||
Option period to extend lease | 6 months | |||||
Lease extension period | 6 months | |||||
Rent paid | $ 13 | $ 1 | $ 25 | $ 51 | ||
Monthly base rent | $ 4 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 03, 2023 USD ($) Loan | Feb. 10, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Distributions [Abstract] | ||||||
Forfeited distributions, cash released from restricted cash account | $ 0 | $ 12 | ||||
Sales/Settlement of Real Estate Assets [Abstract] | ||||||
Net proceeds from sale of real estate | $ 21,236 | $ 63,680 | ||||
Subsequent Event [Member] | ||||||
Sales/Settlement of Real Estate Assets [Abstract] | ||||||
Number of loans settled | Loan | 1 | |||||
Net proceeds from sale of real estate | $ 785 | |||||
Forfeited Assets [Abstract] | ||||||
Proceeds from sale of forfeited assets | $ 16 | |||||
Other Refunds [Abstract] | ||||||
Property tax refunds | 23 | |||||
Subsequent Event [Member] | Class A [Member] | ||||||
Distributions [Abstract] | ||||||
Forfeited distributions, cash released from restricted cash account | 14 | |||||
Allowed claims, distributions paid from restricted cash account | $ 14 |