Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2024 | May 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
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 200 | |
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 | Mar. 31, 2024 | Jun. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 57,810 | $ 25,704 |
Restricted cash (Note 3) | 4,783 | 4,473 |
Other assets (Note 4) | 3,113 | 3,415 |
Total assets | 65,706 | 33,592 |
Liabilities | ||
Accounts payable and accrued liabilities | 20 | 37 |
Distributions payable | 889 | 1,283 |
Accrued liquidation costs (Note 5) | 19,928 | 25,499 |
Total liabilities | 20,837 | 26,819 |
Commitments and Contingencies (Note 12) | ||
Net Assets in Liquidation | ||
Restricted for Qualifying Victims (Note 6) | 4,188 | 3,491 |
All Interestholders | 40,681 | 3,282 |
Total net assets in liquidation | $ 44,869 | $ 6,773 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets in Liquidation - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | $ 39,819 | $ 39,152 | $ 6,773 | $ 34,395 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 647 | (25) | 697 | (27) |
All Interestholders - | ||||
Change in carrying value of assets and liabilities, net | 4,403 | (9,187) | 37,026 | (7,066) |
Distributions (declared) reversed, net | 0 | 6 | 373 | 2,644 |
Net change in assets and liabilities | 4,403 | (9,181) | 37,399 | (4,422) |
Net Assets in Liquidation as of end of period | 44,869 | 29,946 | 44,869 | 29,946 |
Restricted for Qualifying Victims [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 3,541 | 3,483 | 3,491 | 3,485 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 647 | (25) | 697 | (27) |
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 | 4,188 | 3,458 | 4,188 | 3,458 |
All Interestholders [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 36,278 | 35,669 | 3,282 | 30,910 |
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 | 4,403 | (9,187) | 37,026 | (7,066) |
Distributions (declared) reversed, net | 0 | 6 | 373 | 2,644 |
Net change in assets and liabilities | 4,403 | (9,181) | 37,399 | (4,422) |
Net Assets in Liquidation as of end of period | $ 40,681 | $ 26,488 | $ 40,681 | $ 26,488 |
Formation and Description of Bu
Formation and Description of Business | 9 Months Ended |
Mar. 31, 2024 | |
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 .” As further discussed in Note 8, 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. The Trust will be terminated upon the first to occur of (i) the making of all distributions required to be made and a determination by the Liquidation Trustee that the pursuit of additional causes of action held by the Trust is not justified or (ii) March 31, 2026, based on an extension of the term which was approved by the Bankruptcy Court on December 20, 2023 (see below). Notwithstanding the preceding, the termination date of the Trust may be further extended consistent with the terms of the Liquidation Trust Agreement and the Plan. During the year ended June 30, 2023, the Company concluded that its liquidation activities would not be completed by February 15, 2024, which was the original outside termination date of the Trust, for a number of reasons. First, there had been significant delays in certain legal proceedings where the Company is the plaintiff. Second, a construction defect claim was asserted against one of the Wind-Down Subsidiaries by the buyer of one of the subsidiary’s single-family homes. The subsidiary has tendered the claim to its insurance carriers; however, the carriers have not yet accepted the claim. At this time, the amount of the liability exposure has not been determined and the subsidiary’s exposure is unknown. The subsidiary is investigating the claim, including the extent and causes of the alleged damage and the identification of other potentially responsible persons. Based on the foregoing, the Company currently projects a revised estimated completion date for the Company’s operations of approximately March 31, 2026. The Company filed a motion with the Bankruptcy Court to extend the termination date of the Trust from February 15, 2024 through and including March 31, 2026. On December 20, 2023, the Bankruptcy Court granted the Company’s motion to extend the termination date through and including March 31, 2026, as requested by the Trust. Description of Business 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 March 31, 2024, the Company presently estimates that the liquidation activities will be completed by approximately March 31, 2026. 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 March 31, 2024, the Company is the plaintiff in several pending lawsuits. During the three months ended March 31, 2024, the Company recorded settlement recoveries of approximately $3,328,000. During the three months ended March 31, 2023, no settlement recoveries were recorded. During the nine months ended March 31, 2024 and 2023, the Company recorded settlement recoveries of approximately $37,838,000 and $231,000, respectively, from the settlement of Causes of Action (see Note 11 for additional information). The Company also recorded liabilities of 5% of the settlement recoveries as amounts payable to the Liquidation Trustee. The Company has accrued an estimate of the amount of legal costs to be incurred to pursue the remaining Causes of Action, 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 March 31, 2024, the Wind-Down Subsidiaries owned one performing secured loan and one single-family home subject to a life estate (see Note 4 for additional information). The Wind-Down Entities ’ As more fully discussed in Note 2, the Company uses the Liquidation Basis of Accounting. The Trust currently operates as one reportable segment. 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 uncertainty in the timing and requirements of completing the liquidation activities. The Trust’s expectations about the amount of any additional distributions, if any, 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2024 | |
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, 2023 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 was based on current contracts (if any), if contingencies have been removed, estimates and other indications of sales value, net of estimated selling costs. 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 recorded estimated development costs, estimated reserves for contingent liabilities including potential construction defect claims and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company. When estimating development costs, the Company considered estimates of costs to complete punch list items and to address potential construction defect claims and other costs. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company, currently estimated to be approximately March 31, 2026, and an accrual for the administration of potential construction defect claims. 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 or other assets and liabilities are reflected as a change 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. 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, final court approval is received (if required) An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. The Forfeited Assets (Note 6) received from the United States Department of Justice (the “DOJ”), other than cash, have been recorded at their estimated net realizable value. The Company accrues expected interest earnings when it can reasonably estimate the amount to be received. The Company uses a forward yield curve to estimate the interest rates to be earned and its expected future cash balances to estimate the dollar amount that will earn interest through the expected Trust termination date of March 31, 2026. 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 estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs including the costs to complete punch list items, bond refunds and estimated reserves for contingent liabilities including potential construction defect claims and other costs and (b) 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 and the administration of construction defect claims. Cash Equivalents The Company considers short-term investments that have a maturity date of 90 days or less at the time of investment to be a cash equivalent. Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes as described in Note 3. 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, which are held as deposits in several financial institutions. The deposit balances in any one financial institution may exceed the Federal Deposit Insurance Corporation (the “FDIC”) insurance limits. The Company mitigates this risk by using accounts at multiple financial institutions 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 of 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 (see Note 6) from the net assets in liquidation that are available to All Interestholders. Reclassifications The Company has reclassified certain amounts related to its prior period consolidated financial statements to conform to its current period presentation. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Mar. 31, 2024 | |
Restricted Cash [Abstract] | |
Restricted Cash | 3) Restricted Cash The Company’s restricted cash as of March 31, 2024 (unaudited), March 31, 2024 June 30, 2023 Forfeited Assets (Note 6) $ 3,891 $ 3,190 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 892 1,283 Total restricted cash $ 4,783 $ 4,473 |
Other Assets
Other Assets | 9 Months Ended |
Mar. 31, 2024 | |
Other Assets [Abstract] | |
Other Assets | 4) Other Assets The Company’s other assets as of March 31, 2024 (unaudited), with comparative information as of June 30, 2023, are as follows ($ in thousands): March 31, 2024 June 30, 2023 Accrued interest (a) $ 2,070 $ 1,574 Real estate assets, net (b) 460 960 Forfeited Assets (Note 6) (a) 410 435 Settlement receivables, net (c) 79 254 Escrow receivable (d) 52 150 Other 42 42 Total other assets $ 3,113 $ 3,415 (a) The Company accrues interest in the amount that it estimates it will earn on its cash on deposit during the period from April 1, 2024 through March 31, 2026 and during the period from July 1, 2023 through March 31, 2026, respectively. The accrued interest relating to Forfeited Assets is included in the Forfeited Assets line. (b) Real estate assets at March 31, 2024 consisted of one performing loan secured by a a subject to a life estate During the three months ended March 31, 2024, the Company did not (c) Net of an allowance for uncollectible settlement receivables, which was approximately $141,000 and $63,000 as of March 31, 2024 and June 30, 2023, respectively. (d) The escrow receivable as of March 31, 2024 and June 30, 2023 relates to one single-family home that was sold during the year ended June 30, 2023. The amount was held back at the close of escrow to cover specific repairs to the property. As repairs are completed, the costs associated with the repairs are deducted from the escrow receivable. |
Accrued Liquidation Costs
Accrued Liquidation Costs | 9 Months Ended |
Mar. 31, 2024 | |
Accrued Liquidation Costs [Abstract] | |
Accrued Liquidation Costs | 5) Accrued Liquidation Costs The following is a summary of the items included in accrued liquidation costs as of March 31 024 (unaudited), March 31, 2024 June 30, 2023 Development and holding costs $ 4,264 $ 4,757 General and administrative costs: Legal and other professional fees 9,734 13,308 Directors and officers insurance 3,068 3,442 Payroll and payroll-related 1,918 2,757 Board fees and expenses 480 742 Other 464 493 Total general and administrative costs 15,664 20,742 Total accrued liquidation costs $ 19,928 $ 25,499 |
Forfeited Assets - Restricted f
Forfeited Assets - Restricted for Qualifying Victims | 9 Months Ended |
Mar. 31, 2024 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets - Restricted for Qualifying Victims | 6) 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 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 nine months ended March 31, 2024, the Company sold the remaining handbags and some of the jewelry and art. During the three and nine months ended March 31, 2023, the Company sold the automobile, and some of the jewelry, handbags, clothing, shoes and art. On February 23, 2024, the Trust received approximately $560,000 in cash from the DOJ that was forfeited by a co-defendant of Robert Shapiro. These additional Forfeited Assets are also to be distributed to Qualifying Victims. The Forfeited Assets included in the Company’s March 31, 2024 (unaudited) and June 30, 2023 consolidated financial statements are as follows ($ in thousands): March 31, 2024 June 30, 2023 Restricted cash (Note 3) $ 3,891 $ 3,190 Other assets (Note 4) 410 435 Accrued liquidation costs - primarily legal and professional fees (113 ) (134 ) Net assets in liquidation - restricted for Qualifying Victims $ 4,188 $ 3,491 |
Net Change in Assets and Liabil
Net Change in Assets and Liabilities | 9 Months Ended |
Mar. 31, 2024 | |
Net Change in Assets and Liabilities [Abstract] | |
Net Change in Assets and Liabilities | 7) 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 March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 595 - 595 Other assets (38 ) 84 46 Total assets $ 557 $ 84 $ 641 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (6 ) - (6 ) Total liabilities $ (6 ) $ - $ (6 ) Change in carrying value of assets and liabilities, net $ 563 $ 84 $ 647 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 202 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 75 - 75 Other assets (77 ) (25 ) (102 ) Total assets $ (2 ) $ (25 ) $ (27 ) Accounts payable and accrued liabilities $ - $ 6 $ 6 Accrued liquidation costs (8 ) - (8 ) Total liabilities $ (8 ) $ 6 $ (2 ) Change in carrying value of assets and liabilities, net $ 6 $ (31 ) $ (25 ) The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 701 - 701 Other assets (146 ) 121 (25 ) Total assets $ 555 $ 121 $ 676 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (21 ) - (21 ) Total liabilities $ (21 ) $ - $ (21 ) Change in carrying value of assets and liabilities, net $ 576 $ 121 $ 697 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 775 - 775 Other assets (793 ) (25 ) (818 ) Total assets $ (18 ) $ (25 ) $ (43 ) Accounts payable and accrued liabilities $ - $ 6 $ 6 Accrued liquidation costs (22 ) - (22 ) Total liabilities $ (22 ) $ 6 $ (16 ) Change in carrying value of assets and liabilities, net $ 4 $ (31 ) $ (27 ) All Interestholders The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 1,786 $ - $ 1,786 Restricted cash - (1 ) (1 ) Other assets (3,963 ) 4,560 597 Total assets $ (2,177 ) $ 4,559 $ 2,382 Accounts payable and accrued liabilities $ (260 ) $ 246 $ (14 ) Accrued liquidation costs (1,920 ) (87 ) (2,007 ) Total liabilities $ (2,180 ) $ 159 $ (2,021 ) Change in carrying value of assets and liabilities, net $ 3 $ 4,400 $ 4,403 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 23,123 $ - $ 23,123 Restricted cash 15 - 15 Other assets (25,480 ) (1,723 ) (27,203 ) Total assets $ (2,342 ) $ (1,723 ) $ (4,065 ) Accounts payable and accrued liabilities $ (191 ) $ 427 $ 236 Accrued liquidation costs (2,273 ) 7,159 4,886 Total liabilities $ (2,464 ) $ 7,586 $ 5,122 Change in carrying value of assets and liabilities, net $ 122 $ (9,309 ) $ (9,187 ) The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2023 ($ in thousands) (unaudited): Distributions declared $ (14 ) Distributions reversed 20 Distributions (declared) reversed, net $ 6 Distributions payable did not March 31, 2023 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 31,728 $ - $ 31,728 Restricted cash 9 (1 ) 8 Other assets (39,948 ) 39,686 (262 ) Total assets $ (8,211 ) $ 39,685 $ 31,474 Accounts payable and accrued liabilities $ (2,752 ) $ 2,735 $ (17 ) Accrued liquidation costs (5,479 ) (56 ) (5,535 ) Total liabilities $ (8,231 ) $ 2,679 $ (5,552 ) Change in carrying value of assets and liabilities, net $ 20 $ 37,006 $ 37,026 The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2024 Distributions declared $ - Distributions reversed 373 Distributions (declared) reversed, net $ 373 Distributions payable decreased by approximately $394,000 during the nine months ended March 31, 2024 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 16,584 $ - $ 16,584 Restricted cash 16 - 16 Other assets (29,345 ) (1,431 ) (30,776 ) Total assets $ (12,745 ) $ (1,431 ) $ (14,176 ) Accounts payable and accrued liabilities $ (224 ) $ 554 $ 330 Accrued liquidation costs (13,347 ) 5,907 (7,440 ) Total liabilities $ (13,571 ) $ 6,461 $ (7,110 ) Change in carrying value of assets and liabilities, net $ 826 $ (7,892 ) $ (7,066 ) The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2023 Distributions declared $ (14 ) Distributions reversed 2,658 Distributions (declared) reversed, net $ 2,644 Distributions payable decreased by approximately $67,547,000 during the nine months ended March 31, 2023 |
Liquidation Trust Interests
Liquidation Trust Interests | 9 Months Ended |
Mar. 31, 2024 | |
Liquidation Trust Interests [Abstract] | |
Liquidation Trust Interests | 8) Liquidation Trust Interests The following table summarizes the Liquidation Trust Interests (rounded) for the nine months ended March 31, 2024 and 2023 (unaudited): For the Nine Months Ended March 31, 2024 2023 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,515,800 675,617 11,513,535 675,617 Allowed claims 84 - 1,348 - 5 - - 67 - Settlement of claims by cancelling Liquidation Trust Interests (1,222 ) - (760 ) - Outstanding at end of period 11,514,662 675,617 11,514,190 675,617 Of the 11,514,662 Class A Interests outstanding at March 31, 2024, 11,435,288 are held by Qualifying Victims (see Note 6). 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. For the Nine Months Ended March 31, 2024 2023 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 13,875 333 90,793 333 Allowed claims (84 ) - (1,348 ) - Disallowed claims (9,000 ) - (75,570 ) - Reserved for unresolved claims at end of period 4,791 333 13,875 333 Of the 4,791 Class A Interests relating to unresolved claims at March 31, 2024, 1,880 were for Qualifying Victims (see Note 6). |
Distributions
Distributions | 9 Months Ended |
Mar. 31, 2024 | |
Distributions [Abstract] | |
Distributions | 9) 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 (see Note 6). 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 $75.00 per Class B Interest; thereafter (c) to each Liquidation Trust Interest (whether a Class A Interest or Class B Interest) until the aggregate of all distributions made pursuant to this clause equals an amount equivalent to interest, at a per annum fixed rate of 10%, compounded annually, accrued on the aggregate principal amount of all Net Note Claims, Allowed General Unsecured Claims and Net Unit Claims, all as defined in the Plan, treating each distribution pursuant to (a) and (b) above as reductions of such principal amount; and thereafter (d) to the holders of Allowed Subordinated Claims, as defined in the Plan, until such claims are paid in full, including interest, at a per annum fixed rate of 10% or such higher rate as may be agreed to, as provided for in the Plan, compounded annually, accrued on the principal amount of each Allowed Subordinated Claim, as defined. On August 3, 2023, at the recommendation of the Liquidation Trustee, the Trust suspended the making of additional distributions pending the results of the Company’s investigation of a construction defect claim against one of the Wind-Down Subsidiaries by the buyer of one of the subsidiary’s single-family homes. There were no distributions declared or paid during the three and nine months ended March 31, 2024. T here were no distributions declared or paid during the three months ended March 31, 2023. The following distribution was paid during the nine months ended March 31, 2023 relating to the tenth distribution ($ in millions, except for $ per Class A Interest) : Nine Months Ended March 31, 2023 ($ in Millions) Date Declared $ per Class A Interest Total Declared Paid Deposits Into Restricted Cash Account Tenth 6/15/2022 (a) $ 5.63 $ - $ 64.19 $ 0.82 (a) distribution was declared on June 15, 2022 and was paid on July 15, 2022. The deposit into the restricted cash account with respect to the tenth distribution was made on July 26, 2022 As claims are resolved, additional Class A Interests may be issued or cancelled. Therefore, the total amount of a distribution declared may change. In addition, distributions may change if Interestholders that were previously deemed to have forfeited their rights to receive Class A Interest distributions subsequently respond and if overpaid distributions are returned. 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 March 31, 2024 and 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 $5,000 and $14,000, respectively, were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amoun t s. During the nine months ended March 31, 2024 and 2023, distributions of approximately $20,000 and $718,000, respectively, were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amounts During both the three months ended March 31, 2024 and 2023, as a result of claims being disallowed or Class A Interests being cancelled, no amounts were released from the restricted cash account and therefore distributions payable were not reduced. During the nine months ended March 31, 2024 and 2023, approximately $373,000 and $2,650,000, respectively, were released from the restricted cash account and distributions payable were reduced by the same amounts. During the three and nine months ended March 31, 2023, approximately $20,000 was received from Interestholders that had been overpaid on prior distributions. During the three and nine months ended March 31, 2024, no Interestholders repaid amounts related to prior 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 three and nine months ended March 31, 2024, no Interestholders that had previously been deemed to have forfeited their rights to receive Class A Interest distributions had responded. During the three and nine months ended March 31, 2023, some Interestholders that had previously been deemed to have forfeited their rights to receive Class A Interest distributions had responded and, therefore, approximately $14,000 and $26,000, respectively, were added to the restricted cash account and distributions payable were increased by the same amounts. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10) Related Party Transactions Terry Goebel, a former 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. During the year ended June 30, 2023, the Company completed its contract with G3 for the development of one single-family home in Los Angeles, California. As of March 31, 2024 and June 30, 2023, there were no remaining amounts payable under this contract. During the three months ended March 31, 2024 and 2023, and the nine months ended March 31, 2024 and 2023, no payments 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 March 31 respectively, and during the nine months ended March 31, 2024 and 2023, approximately $2,730,000 and $30,000, respectively, 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 nine months ended March 31, 2024 and 2023, approximately $2,748,000 and $83,000, 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 the 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 March 31, 2024 and 2023, approximately $90,000 and $94,000, respectively, and during the nine months ended March 31, 2024 and 2023, approximately payables as of March 31, 2024 and June 30, 2023 The executive officers of the Wind-Down Entity were entitled to a bonus based on the Wind-Down Entity achieving certain specified cumulative amounts of distributions to the Trust. |
Causes of Action
Causes of Action | 9 Months Ended |
Mar. 31, 2024 | |
Causes of Action [Abstract] | |
Causes of Action | 11) Causes of Action One of the Trust’s liquidation activities is to litigate and/or settle Causes of Action. The Trust has pursued litigation against nine law firms and 10 individual attorneys. As of March 31, 2024, the cases against eight law firms and nine individual attorneys have been settled or dismissed and litigation against one law firm and an individual attorney The Trust has also filed numerous avoidance actions, most of which have been resolved, resulting in recoveries by or judgments in favor of the Trust. As of March 31, 2024, 34 legal actions remain pending. Additionally, since February 15, 2019 and as of March 31, 2024, the Trust has obtained default and stipulated judgments related to certain avoidance actions. It is unknown at this time how much, if any, will ultimately be collected on the judgments. Therefore, the Company has not recognized any recoveries from these judgments. During the three months ended March 31, 2024, the Company recorded approximately $3,328,000, during the three months ended March 31, 2023, no amounts were recorded and during the nine months ended March 31, 2024 and 2023, the Company recorded approximately $37,838,000 and $231,000, respectively, from the settlement of Causes of Action. The Company also recorded liabilities of 5% of the settlements as amounts payable to the Liquidation Trustee and an allowance for uncollectible settlement installment receivables. See Note 4 for information about the settlement receivables, net as of March 31, 2024 and June 30, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12) Commitments and Contingencies Since the Company uses the liquidation basis of accounting, the Company has accrued estimated liquidation costs to the extent they are reasonably determinable, which includes the items discussed in this footnote. The Company had a lease for its office space that expired on January 31, 2024. This lease was not renewed upon expiration. The monthly base rent was approximately $4,000 per month. Th and respectively, and during the nine months ended March 31, 2024 and 2023, was approximately $37,000 and $38,000, respectivel y. On December 18, 2023, the Company entered into a new month-to-month lease for office space commencing on January 1, 2024. The lease may be terminated with no less than one month’s notice from the first day of any calendar month. The monthly r . On December 20, 2023, the Company paid a deposit of approximately $2,000 The Wind-Down Entity has part-time employment agreements with its two executive officers through December 31, 2023. The agreements renewed automatically on January 1, 2024, subject to the right of either party to terminate the agreement at any time and for any reason on thirty days’ advance written notice. A construction defect claim was asserted against one of the Wind-Down Subsidiaries by the buyer of one of the subsidiary’s single-family homes during the year ended June 30, 2023. The subsidiary has tendered the claim to its insurance carriers; however, the carriers have not yet accepted the claim. At this time, the amount of the liability exposure has not been determined and the subsidiary’s exposure is unknown. The subsidiary is investigating the claim, including the extent and causes of the alleged damage and the identification of other potentially responsible persons The Company is not presently the defendant in any material litigation nor, to the Company’s knowledge, is any material litigation threatened against the Company other than as described herein. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13) Subsequent Events The Company evaluates subsequent events up until the date the unaudited consolidated financial statements are issued. Liquidation Trust Interests The following table summarizes the Liquidation Trust Interests (rounded) for the period from April 1, 2024 through May 13, 2024: Liquidation Trust Interests Class A Class B Outstanding at April 1, 2024 11,514,662 675,617 Allowed claims 1,812 334 Settlement of claims by cancelling Liquidation Trust Interests - - Outstanding at May 13, 2024 11,516,474 675,951 Of the 11,516,474 Class A Interests outstanding at May 13, 2024, 11,436,443 are held by Qualifying Victims (see Note 6). The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the period from April 1, 2024 through May 13, 2024: Liquidation Trust Interests Class A Class B Outstanding at April 1, 2024 4,791 333 Allowed claims (1,812 ) (333 ) Disallowed claims (901 ) - Outstanding at May 13, 2024 2,078 - Of the 2,078 Class A Interests relating to unresolved claims at May 13, 2024, 725 were for Qualifying Victims (see Note 6). Distributions During the period from April 1, 2024 through May 13, 2024, 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 $72,000 were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amount s. During the period from April 1, 2024 through May 13, 2024, as a result of claims being disallowed, approximately $33,000 was released from the restricted cash account and distributions payable were reduced by the same amount. Forfeited Assets During the period from April 1, 2024 through May 13, 2024, the Company received net proceeds of approximately $3,000 from the sale of Forfeited Assets. Cybersecurity Risk Management Committee On May 9, 2024, the Trust approved the establishment of a Cybersecurity Risk Management Committee, the appointment of M. Freddie Reiss to be the sole member of the committee, and the payment of $5,000 per month to Mr. Reiss for his service as a member of such committee. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
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, 2023 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 was based on current contracts (if any), if contingencies have been removed, estimates and other indications of sales value, net of estimated selling costs. 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 recorded estimated development costs, estimated reserves for contingent liabilities including potential construction defect claims and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company. When estimating development costs, the Company considered estimates of costs to complete punch list items and to address potential construction defect claims and other costs. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company, currently estimated to be approximately March 31, 2026, and an accrual for the administration of potential construction defect claims. 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 or other assets and liabilities are reflected as a change 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. 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, final court approval is received (if required) An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. The Forfeited Assets (Note 6) received from the United States Department of Justice (the “DOJ”), other than cash, have been recorded at their estimated net realizable value. The Company accrues expected interest earnings when it can reasonably estimate the amount to be received. The Company uses a forward yield curve to estimate the interest rates to be earned and its expected future cash balances to estimate the dollar amount that will earn interest through the expected Trust termination date of March 31, 2026. 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 estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs including the costs to complete punch list items, bond refunds and estimated reserves for contingent liabilities including potential construction defect claims and other costs and (b) 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 and the administration of construction defect claims. |
Cash Equivalents | Cash Equivalents The Company considers short-term investments that have a maturity date of 90 days or less at the time of investment to be a cash equivalent. |
Restricted Cash | Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes as described in Note 3. |
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, which are held as deposits in several financial institutions. The deposit balances in any one financial institution may exceed the Federal Deposit Insurance Corporation (the “FDIC”) insurance limits. The Company mitigates this risk by using accounts at multiple financial institutions 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 of 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 (see Note 6) from the net assets in liquidation that are available to All Interestholders. |
Reclassifications | Reclassifications The Company has reclassified certain amounts related to its prior period consolidated financial statements to conform to its current period presentation. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Restricted Cash [Abstract] | |
Restricted Cash | The Company’s restricted cash as of March 31, 2024 (unaudited), March 31, 2024 June 30, 2023 Forfeited Assets (Note 6) $ 3,891 $ 3,190 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 892 1,283 Total restricted cash $ 4,783 $ 4,473 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Other Assets [Abstract] | |
Other Assets | The Company’s other assets as of March 31, 2024 (unaudited), with comparative information as of June 30, 2023, are as follows ($ in thousands): March 31, 2024 June 30, 2023 Accrued interest (a) $ 2,070 $ 1,574 Real estate assets, net (b) 460 960 Forfeited Assets (Note 6) (a) 410 435 Settlement receivables, net (c) 79 254 Escrow receivable (d) 52 150 Other 42 42 Total other assets $ 3,113 $ 3,415 (a) The Company accrues interest in the amount that it estimates it will earn on its cash on deposit during the period from April 1, 2024 through March 31, 2026 and during the period from July 1, 2023 through March 31, 2026, respectively. The accrued interest relating to Forfeited Assets is included in the Forfeited Assets line. (b) Real estate assets at March 31, 2024 consisted of one performing loan secured by a a subject to a life estate During the three months ended March 31, 2024, the Company did not (c) Net of an allowance for uncollectible settlement receivables, which was approximately $141,000 and $63,000 as of March 31, 2024 and June 30, 2023, respectively. (d) The escrow receivable as of March 31, 2024 and June 30, 2023 relates to one single-family home that was sold during the year ended June 30, 2023. The amount was held back at the close of escrow to cover specific repairs to the property. As repairs are completed, the costs associated with the repairs are deducted from the escrow receivable. |
Accrued Liquidation Costs (Tabl
Accrued Liquidation Costs (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Accrued Liquidation Costs [Abstract] | |
Summary of Accrued Liquidation Costs | The following is a summary of the items included in accrued liquidation costs as of March 31 024 (unaudited), March 31, 2024 June 30, 2023 Development and holding costs $ 4,264 $ 4,757 General and administrative costs: Legal and other professional fees 9,734 13,308 Directors and officers insurance 3,068 3,442 Payroll and payroll-related 1,918 2,757 Board fees and expenses 480 742 Other 464 493 Total general and administrative costs 15,664 20,742 Total accrued liquidation costs $ 19,928 $ 25,499 |
Forfeited Assets - Restricted_2
Forfeited Assets - Restricted for Qualifying Victims (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets Included in Consolidated Financial Statements | The Forfeited Assets included in the Company’s March 31, 2024 (unaudited) and June 30, 2023 consolidated financial statements are as follows ($ in thousands): March 31, 2024 June 30, 2023 Restricted cash (Note 3) $ 3,891 $ 3,190 Other assets (Note 4) 410 435 Accrued liquidation costs - primarily legal and professional fees (113 ) (134 ) Net assets in liquidation - restricted for Qualifying Victims $ 4,188 $ 3,491 |
Net Change in Assets and Liab_2
Net Change in Assets and Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 595 - 595 Other assets (38 ) 84 46 Total assets $ 557 $ 84 $ 641 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (6 ) - (6 ) Total liabilities $ (6 ) $ - $ (6 ) Change in carrying value of assets and liabilities, net $ 563 $ 84 $ 647 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 202 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 75 - 75 Other assets (77 ) (25 ) (102 ) Total assets $ (2 ) $ (25 ) $ (27 ) Accounts payable and accrued liabilities $ - $ 6 $ 6 Accrued liquidation costs (8 ) - (8 ) Total liabilities $ (8 ) $ 6 $ (2 ) Change in carrying value of assets and liabilities, net $ 6 $ (31 ) $ (25 ) The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 701 - 701 Other assets (146 ) 121 (25 ) Total assets $ 555 $ 121 $ 676 Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (21 ) - (21 ) Total liabilities $ (21 ) $ - $ (21 ) Change in carrying value of assets and liabilities, net $ 576 $ 121 $ 697 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ - $ - $ - Restricted cash 775 - 775 Other assets (793 ) (25 ) (818 ) Total assets $ (18 ) $ (25 ) $ (43 ) Accounts payable and accrued liabilities $ - $ 6 $ 6 Accrued liquidation costs (22 ) - (22 ) Total liabilities $ (22 ) $ 6 $ (16 ) Change in carrying value of assets and liabilities, net $ 4 $ (31 ) $ (27 ) All Interestholders The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 1,786 $ - $ 1,786 Restricted cash - (1 ) (1 ) Other assets (3,963 ) 4,560 597 Total assets $ (2,177 ) $ 4,559 $ 2,382 Accounts payable and accrued liabilities $ (260 ) $ 246 $ (14 ) Accrued liquidation costs (1,920 ) (87 ) (2,007 ) Total liabilities $ (2,180 ) $ 159 $ (2,021 ) Change in carrying value of assets and liabilities, net $ 3 $ 4,400 $ 4,403 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 23,123 $ - $ 23,123 Restricted cash 15 - 15 Other assets (25,480 ) (1,723 ) (27,203 ) Total assets $ (2,342 ) $ (1,723 ) $ (4,065 ) Accounts payable and accrued liabilities $ (191 ) $ 427 $ 236 Accrued liquidation costs (2,273 ) 7,159 4,886 Total liabilities $ (2,464 ) $ 7,586 $ 5,122 Change in carrying value of assets and liabilities, net $ 122 $ (9,309 ) $ (9,187 ) The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2024 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 31,728 $ - $ 31,728 Restricted cash 9 (1 ) 8 Other assets (39,948 ) 39,686 (262 ) Total assets $ (8,211 ) $ 39,685 $ 31,474 Accounts payable and accrued liabilities $ (2,752 ) $ 2,735 $ (17 ) Accrued liquidation costs (5,479 ) (56 ) (5,535 ) Total liabilities $ (8,231 ) $ 2,679 $ (5,552 ) Change in carrying value of assets and liabilities, net $ 20 $ 37,006 $ 37,026 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2023 Cash Remeasure- Activities ment Total Cash and cash equivalents $ 16,584 $ - $ 16,584 Restricted cash 16 - 16 Other assets (29,345 ) (1,431 ) (30,776 ) Total assets $ (12,745 ) $ (1,431 ) $ (14,176 ) Accounts payable and accrued liabilities $ (224 ) $ 554 $ 330 Accrued liquidation costs (13,347 ) 5,907 (7,440 ) Total liabilities $ (13,571 ) $ 6,461 $ (7,110 ) Change in carrying value of assets and liabilities, net $ 826 $ (7,892 ) $ (7,066 ) |
Distributions (Declared) Reversed, Net | The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2023 ($ in thousands) (unaudited): Distributions declared $ (14 ) Distributions reversed 20 Distributions (declared) reversed, net $ 6 The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2024 Distributions declared $ - Distributions reversed 373 Distributions (declared) reversed, net $ 373 The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2023 Distributions declared $ (14 ) Distributions reversed 2,658 Distributions (declared) reversed, net $ 2,644 |
Liquidation Trust Interests (Ta
Liquidation Trust Interests (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Liquidation Trust Interests [Abstract] | |
Liquidation Trust Interests | The following table summarizes the Liquidation Trust Interests (rounded) for the nine months ended March 31, 2024 and 2023 (unaudited): For the Nine Months Ended March 31, 2024 2023 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,515,800 675,617 11,513,535 675,617 Allowed claims 84 - 1,348 - 5 - - 67 - Settlement of claims by cancelling Liquidation Trust Interests (1,222 ) - (760 ) - Outstanding at end of period 11,514,662 675,617 11,514,190 675,617 |
Unresolved Claims Relating to Liquidation Trust Interests | For the Nine Months Ended March 31, 2024 2023 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 13,875 333 90,793 333 Allowed claims (84 ) - (1,348 ) - Disallowed claims (9,000 ) - (75,570 ) - Reserved for unresolved claims at end of period 4,791 333 13,875 333 |
Distributions (Tables)
Distributions (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Distributions [Abstract] | |
Distributions Declared and Paid | T here were no distributions declared or paid during the three months ended March 31, 2023. The following distribution was paid during the nine months ended March 31, 2023 relating to the tenth distribution ($ in millions, except for $ per Class A Interest) : Nine Months Ended March 31, 2023 ($ in Millions) Date Declared $ per Class A Interest Total Declared Paid Deposits Into Restricted Cash Account Tenth 6/15/2022 (a) $ 5.63 $ - $ 64.19 $ 0.82 (a) distribution was declared on June 15, 2022 and was paid on July 15, 2022. The deposit into the restricted cash account with respect to the tenth distribution was made on July 26, 2022 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Liquidation Trust Interests Through Subsequent Period | The following table summarizes the Liquidation Trust Interests (rounded) for the period from April 1, 2024 through May 13, 2024: Liquidation Trust Interests Class A Class B Outstanding at April 1, 2024 11,514,662 675,617 Allowed claims 1,812 334 Settlement of claims by cancelling Liquidation Trust Interests - - Outstanding at May 13, 2024 11,516,474 675,951 |
Unresolved Claim Related to Liquidation Trust Interests Through Subsequent Period | The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the period from April 1, 2024 through May 13, 2024: Liquidation Trust Interests Class A Class B Outstanding at April 1, 2024 4,791 333 Allowed claims (1,812 ) (333 ) Disallowed claims (901 ) - Outstanding at May 13, 2024 2,078 - |
Formation and Description of _2
Formation and Description of Business (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 USD ($) Asset Class | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) Asset Class Segment | Mar. 31, 2023 USD ($) | 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 | 2 | |||
Description of Business [Abstract] | |||||
Settlement recoveries from settlement of causes of action | $ | $ 3,328,000 | $ 0 | $ 37,838,000 | $ 231,000 | |
Percentage of settlement recoveries as amounts payable to liquidation trustee | 5% | ||||
Number of reportable segments | Segment | 1 | ||||
Secured Loans [Member] | |||||
Description of Business [Abstract] | |||||
Number of real estate assets owned by Wind-Down Subsidiaries | Asset | 1 | 1 | |||
Single-Family Home [Member] | |||||
Description of Business [Abstract] | |||||
Number of real estate assets owned by Wind-Down Subsidiaries | Asset | 1 | 1 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Restricted Cash [Abstract] | ||
Forfeited Assets (Note 6) | $ 3,891 | $ 3,190 |
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 | 892 | 1,283 |
Total restricted cash | $ 4,783 | $ 4,473 |
Other Assets (Details)
Other Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 USD ($) Property Loan | Mar. 31, 2023 USD ($) Loan Property | Mar. 31, 2024 USD ($) Property Loan | Mar. 31, 2023 USD ($) Loan Property | Jun. 30, 2023 USD ($) Loan Property | ||
Other Assets [Abstract] | ||||||
Accrued interest | [1] | $ 2,070 | $ 2,070 | $ 1,574 | ||
Real estate assets, net | [2] | 460 | 460 | 960 | ||
Forfeited Assets (Note 6) | [1] | 410 | 410 | 435 | ||
Settlement receivables, net | [3] | 79 | 79 | 254 | ||
Escrow receivables | [4] | 52 | 52 | 150 | ||
Other | 42 | 42 | 42 | |||
Total other assets | 3,113 | 3,113 | 3,415 | |||
Allowance for uncollectible settlement installment receivables | $ 141 | $ 141 | $ 63 | |||
Number of performing loans secured by property | Loan | 1 | 1 | 1 | 1 | 1 | |
Number of real estate properties | Property | 1 | 1 | ||||
Net proceeds from sale of real estate | $ 25,400 | $ 25,400 | ||||
Ohio [Member] | ||||||
Other Assets [Abstract] | ||||||
Number of real estate properties | Property | 1 | 1 | 1 | |||
Hawaii [Member] | ||||||
Other Assets [Abstract] | ||||||
Number of performing loans secured by property | Loan | 1 | 1 | ||||
Number of real estate properties | Property | 1 | 1 | 1 | |||
Net proceeds from sale of real estate | $ 0 | $ 500 | ||||
Single-Family Homes [Member] | ||||||
Other Assets [Abstract] | ||||||
Number of properties with escrow receivables, which were sold in current year | Property | 1 | 1 | ||||
Single-Family Homes [Member] | Florida [Member] | ||||||
Other Assets [Abstract] | ||||||
Number of real estate properties | Property | 1 | 1 | 1 | |||
[1] The Company accrues interest in the amount that it estimates it will earn on its cash on deposit during the period from April 1, 2024 through March 31, 2026 and during the period from July 1, 2023 through March 31, 2026, respectively. The accrued interest relating to Forfeited Assets is included in the Forfeited Assets line. a a not Net of an allowance for uncollectible settlement receivables, which was approximately $141,000 and $63,000 as of March 31, 2024 and June 30, 2023, respectively. The escrow receivable as of March 31, 2024 and June 30, 2023 relates to one single-family home that was sold during the year ended June 30, 2023. The amount was held back at the close of escrow to cover specific repairs to the property. As repairs are completed, the costs associated with the repairs are deducted from the escrow receivable. |
Accrued Liquidation Costs (Deta
Accrued Liquidation Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Accrued Liquidation Costs [Abstract] | ||
Development and holding costs | $ 4,264 | $ 4,757 |
General and administrative costs [Abstract] | ||
Legal and other professional fees | 9,734 | 13,308 |
Directors and officers insurance | 3,068 | 3,442 |
Payroll and payroll-related | 1,918 | 2,757 |
Board fees and expenses | 480 | 742 |
Other | 464 | 493 |
Total general and administrative costs | 15,664 | 20,742 |
Total accrued liquidation costs | $ 19,928 | $ 25,499 |
Forfeited Assets - Restricted_3
Forfeited Assets - Restricted for Qualifying Victims (Details) - USD ($) $ in Thousands | Feb. 23, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | |
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 | |||
Proceeds from DOJ for forfeited assets | $ 560 | |||
Forfeited Assets [Abstract] | ||||
Restricted cash (Note 3) | 3,891 | $ 3,190 | ||
Other assets (Note 4) | [1] | 410 | 435 | |
Accrued liquidation costs - primarily legal and professional fees | (113) | (134) | ||
Net assets in liquidation - restricted for Qualifying Victims | $ 4,188 | $ 3,491 | ||
[1] The Company accrues interest in the amount that it estimates it will earn on its cash on deposit during the period from April 1, 2024 through March 31, 2026 and during the period from July 1, 2023 through March 31, 2026, respectively. The accrued interest relating to Forfeited Assets is included in the Forfeited Assets line. |
Net Change in Assets and Liab_3
Net Change in Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Change in carrying value of assets and liabilities, net | $ 647 | $ (25) | $ 697 | $ (27) |
Change in carrying value of assets and liabilities, net | 4,403 | (9,187) | 37,026 | (7,066) |
Distributions Declared, Net [Abstract] | ||||
Distributions declared | 0 | 0 | 0 | |
Distributions (declared) reversed, net | 0 | 6 | 373 | 2,644 |
Decrease in distributions payable | 5 | 0 | 394 | (67,547) |
Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 595 | 75 | 701 | 775 |
Other assets | 46 | (102) | (25) | (818) |
Total assets | 641 | (27) | 676 | (43) |
Accounts payable and accrued liabilities | 0 | 6 | 0 | 6 |
Accrued liquidation costs | (6) | (8) | (21) | (22) |
Total liabilities | (6) | (2) | (21) | (16) |
Change in carrying value of assets and liabilities, net | 647 | (25) | 697 | (27) |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Distributions Declared, Net [Abstract] | ||||
Distributions (declared) reversed, net | 0 | 0 | 0 | 0 |
All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 1,786 | 23,123 | 31,728 | 16,584 |
Restricted cash | (1) | 15 | 8 | 16 |
Other assets | 597 | (27,203) | (262) | (30,776) |
Total assets | 2,382 | (4,065) | 31,474 | (14,176) |
Accounts payable and accrued liabilities | (14) | 236 | (17) | 330 |
Accrued liquidation costs | (2,007) | 4,886 | (5,535) | (7,440) |
Total liabilities | (2,021) | 5,122 | (5,552) | (7,110) |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Change in carrying value of assets and liabilities, net | 4,403 | (9,187) | 37,026 | (7,066) |
Distributions Declared, Net [Abstract] | ||||
Distributions declared | 0 | (14) | 0 | (14) |
Distributions reversed | 0 | 20 | 373 | 2,658 |
Distributions (declared) reversed, net | 0 | 6 | 373 | 2,644 |
Cash Activities [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 595 | 75 | 701 | 775 |
Other assets | (38) | (77) | (146) | (793) |
Total assets | 557 | (2) | 555 | (18) |
Accounts payable and accrued liabilities | 0 | 0 | 0 | 0 |
Accrued liquidation costs | (6) | (8) | (21) | (22) |
Total liabilities | (6) | (8) | (21) | (22) |
Change in carrying value of assets and liabilities, net | 563 | 6 | 576 | 4 |
Cash Activities [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 1,786 | 23,123 | 31,728 | 16,584 |
Restricted cash | 0 | 15 | 9 | 16 |
Other assets | (3,963) | (25,480) | (39,948) | (29,345) |
Total assets | (2,177) | (2,342) | (8,211) | (12,745) |
Accounts payable and accrued liabilities | (260) | (191) | (2,752) | (224) |
Accrued liquidation costs | (1,920) | (2,273) | (5,479) | (13,347) |
Total liabilities | (2,180) | (2,464) | (8,231) | (13,571) |
Change in carrying value of assets and liabilities, net | 3 | 122 | 20 | 826 |
Remeasurement [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 | 0 |
Other assets | 84 | (25) | 121 | (25) |
Total assets | 84 | (25) | 121 | (25) |
Accounts payable and accrued liabilities | 0 | 6 | 0 | 6 |
Accrued liquidation costs | 0 | 0 | 0 | 0 |
Total liabilities | 0 | 6 | 0 | 6 |
Change in carrying value of assets and liabilities, net | 84 | (31) | 121 | (31) |
Remeasurement [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | (1) | 0 | (1) | 0 |
Other assets | 4,560 | (1,723) | 39,686 | (1,431) |
Total assets | 4,559 | (1,723) | 39,685 | (1,431) |
Accounts payable and accrued liabilities | 246 | 427 | 2,735 | 554 |
Accrued liquidation costs | (87) | 7,159 | (56) | 5,907 |
Total liabilities | 159 | 7,586 | 2,679 | 6,461 |
Change in carrying value of assets and liabilities, net | $ 4,400 | $ (9,309) | $ 37,006 | $ (7,892) |
Liquidation Trust Interests (De
Liquidation Trust Interests (Details) - shares | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liquidation Trust Interests [Abstract] | ||
Held by Qualifying Victims (in shares) | 11,435,288 | |
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) | 11,515,800 | 11,513,535 |
Allowed claims (in shares) | 84 | 1,348 |
5% enhancement for certain allowed claims (in shares) | 0 | 67 |
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | (1,222) | (760) |
Outstanding at end of period (in shares) | 11,514,662 | 11,514,190 |
Percentage of enhancement for certain allowed claims | 5% | 5% |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 13,875 | 90,793 |
Allowed claims (in shares) | (84) | (1,348) |
Disallowed claims (in shares) | (9,000) | (75,570) |
Outstanding at end of period (in shares) | 4,791 | 13,875 |
Class B [Member] | ||
Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 675,617 | 675,617 |
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 | 0 |
Outstanding at end of period (in shares) | 675,617 | 675,617 |
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 | 333 |
Allowed claims (in shares) | 0 | 0 |
Disallowed claims (in shares) | 0 | 0 |
Outstanding at end of period (in shares) | 333 | 333 |
Distributions (Details)
Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Distributions [Abstract] | |||||
Total declared | $ 0 | $ 0 | $ 0 | ||
Paid | 0 | 0 | 0 | ||
Amount received from interestholders that had been overpaid on prior distributions | 0 | 20 | 0 | $ 20 | |
Forfeited distributions, cash released from restricted cash account | $ 0 | 14 | $ 0 | 26 | |
Tenth [Member] | |||||
Distributions [Abstract] | |||||
Date declared | [1] | Jun. 15, 2022 | |||
Total declared | 0 | ||||
Paid | 64,190 | ||||
Deposits into restricted cash account | 820 | 820 | |||
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 | $ 5 | 14 | $ 20 | 718 | |
Disallowed or cancelled claims, cash released from restricted cash account | $ 0 | $ 0 | $ 373 | $ 2,650 | |
Class A [Member] | Tenth [Member] | |||||
Distributions [Abstract] | |||||
$ per interest (in dollars per share) | $ 5.63 | ||||
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 was paid on July 15, 2022. The deposit into the restricted cash account with respect to the tenth distribution was made on July 26, 2022 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 USD ($) Asset | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) Asset | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Executive Officer [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Payments for bonuses | $ 0 | $ 0 | $ 0 | $ 3,273 | ||
Accrued amount | $ 0 | $ 0 | $ 0 | $ 0 | ||
G3 Group LA [Member] | Single-Family Homes [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Number of real estate assets under contract for development | Asset | 1 | 1 | ||||
Amount payable to related party | $ 0 | $ 0 | 0 | |||
Amount paid under contract | 0 | 0 | 0 | 0 | ||
Akerman LLP [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Amount payable to related party | 0 | 0 | 0 | |||
Payments for legal services | 90 | 94 | 302 | 362 | ||
Liquidation Trustee [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Amount paid under contract | 261 | 83 | $ 2,748 | 83 | ||
Percentage entitled to receive from total gross amount recovered | 5% | |||||
Liquidation Trustee [Member] | Recovery by Trust from Pursuit of Trust Causes of Action [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Accrued amount due to related party | 250 | $ 21 | $ 2,730 | $ 30 | ||
Liquidation Trustee [Member] | Causes of Action Recoveries [Member] | ||||||
Related Parties Transaction [Abstract] | ||||||
Amount payable to related party | $ 14 | $ 14 | $ 32 |
Causes of Action (Details)
Causes of Action (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 USD ($) Attorney Action Firm | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) Attorney Firm Action | Mar. 31, 2023 USD ($) | |
Causes of Action [Abstract] | ||||
Number of law firms against which Trust is pursuing Causes of Action | Firm | 9 | |||
Number of individual attorneys against which Trust is pursuing Causes of Action | Attorney | 10 | |||
Number of law firms against which cases have been settled | Firm | 8 | |||
Number of individual attorneys against which cases have been settled | Attorney | 9 | |||
Number of law firms against which litigation is in various stages | Firm | 1 | 1 | ||
Number of individual attorneys against which litigation is in various stages | Attorney | 1 | 1 | ||
Number of legal actions remaining pending | Action | 34 | 34 | ||
Settlement recoveries from settlement of causes of action | $ | $ 3,328 | $ 0 | $ 37,838 | $ 231 |
Liquidation Trustee [Member] | ||||
Causes of Action [Abstract] | ||||
Percentage of liabilities payable to related party | 5% | 5% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) Officer | Mar. 31, 2023 USD ($) | Mar. 22, 2024 USD ($) | Dec. 20, 2023 USD ($) | |
Commitments and Contingencies [Abstract] | ||||||
Monthly base rent | $ 4 | |||||
Rent paid | $ 8 | $ 13 | 37 | $ 38 | ||
Monthly rent | $ 2 | |||||
Deposit for lease | $ 2 | $ 2 | ||||
Number of executive officers with part-time employment agreements | Officer | 2 | |||||
Advance written notice period to terminate part-time employment agreements | 30 days |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 09, 2024 | May 13, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Liquidation Trust Interests [Abstract] | ||||||
Held by Qualifying Victims (in shares) | 11,435,288 | 11,435,288 | ||||
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||||||
Unresolved claims held by Qualifying Victims (in shares) | 1,880 | 1,880 | ||||
Class A [Member] | ||||||
Liquidation Trust Interests [Abstract] | ||||||
Outstanding at beginning of period (in shares) | 11,514,662 | 11,515,800 | 11,513,535 | |||
Allowed claims (in shares) | 84 | 1,348 | ||||
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | (1,222) | (760) | ||||
Outstanding at end of period (in shares) | 11,514,662 | 11,514,190 | 11,514,662 | 11,514,190 | ||
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||||||
Outstanding at beginning of period (in shares) | 4,791 | 13,875 | 90,793 | |||
Allowed claims (in shares) | (84) | (1,348) | ||||
Disallowed claims (in shares) | (9,000) | (75,570) | ||||
Outstanding at end of period (in shares) | 4,791 | 13,875 | 4,791 | 13,875 | ||
Distributions [Abstract] | ||||||
Subsequent distributions paid | $ 5 | $ 14 | $ 20 | $ 718 | ||
Class B [Member] | ||||||
Liquidation Trust Interests [Abstract] | ||||||
Outstanding at beginning of period (in shares) | 675,617 | 675,617 | 675,617 | |||
Allowed claims (in shares) | 0 | 0 | ||||
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | 0 | 0 | ||||
Outstanding at end of period (in shares) | 675,617 | 675,617 | 675,617 | 675,617 | ||
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||||||
Outstanding at beginning of period (in shares) | 333 | 333 | 333 | |||
Allowed claims (in shares) | 0 | 0 | ||||
Disallowed claims (in shares) | 0 | 0 | ||||
Outstanding at end of period (in shares) | 333 | 333 | 333 | 333 | ||
Subsequent Event [Member] | ||||||
Forfeited Assets [Abstract] | ||||||
Proceeds from sale of Forfeited Assets | $ 3 | |||||
Cybersecurity Risk Management Committee [Abstract] | ||||||
Monthly payment for service as committee member | $ 5 | |||||
Subsequent Event [Member] | Class A [Member] | ||||||
Liquidation Trust Interests [Abstract] | ||||||
Allowed claims (in shares) | 1,812 | |||||
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | 0 | |||||
Outstanding at end of period (in shares) | 11,516,474 | |||||
Held by Qualifying Victims (in shares) | 11,436,443 | |||||
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||||||
Allowed claims (in shares) | (1,812) | |||||
Disallowed claims (in shares) | (901) | |||||
Outstanding at end of period (in shares) | 2,078 | |||||
Unresolved claims held by Qualifying Victims (in shares) | 725 | |||||
Distributions [Abstract] | ||||||
Subsequent distributions paid | $ 72 | |||||
Amount released from restricted cash account resulting from claims being disallowed | $ 33 | |||||
Subsequent Event [Member] | Class B [Member] | ||||||
Liquidation Trust Interests [Abstract] | ||||||
Allowed claims (in shares) | 334 | |||||
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | 0 | |||||
Outstanding at end of period (in shares) | 675,951 | |||||
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||||||
Allowed claims (in shares) | (333) | |||||
Disallowed claims (in shares) | 0 | |||||
Outstanding at end of period (in shares) | 0 |