Woodbridge Liquidation Trust

What they do

The Trust does not operate a business; it winds down the former Woodbridge Group of Companies by resolving claims, pursuing Contributed Claims and Causes of Action, managing remaining real estate, and making distributions under a defined waterfall. Distributions are made by the Liquidation Trustee at his sole discretion, subject to Plan provisions and a distribution suspension the Supervisory Board approved on August 3, 2023 pending investigation of a construction defect claim. Claims and interests are tracked as Class 3, Class 4, Class 5, Class A Interests, Class B Interests, and Subordinated Claims.

Revenue drivers

• Settlement recoveries and Causes of Action — For the nine months ended March 31, 2026 the Trust recorded approximately $3.39 million of settlement recoveries net of a 5% payable (about $267,000) to the Liquidation Trustee; the same period reflected approximately $3,388 thousand of settlement recoveries within the change in carrying value. Management states remaining Causes of Action are limited and future recoveries will be negligible versus prior periods.
• Insurance recoveries — During the nine months ended March 31, 2025 the Trust recognized a loss recovery of approximately $4.32 million from its primary insurance carrier relating to the initial repair of the construction defect, and the latest change in carrying value includes an insurance receivable of approximately $4,319,000 plus $509,000 of insurance reimbursements. Amounts remain subject to the unresolved construction defect claim.
• Interest earnings — The Trust earned approximately $1.93 million of interest during the nine months ended March 31, 2026 and had approximately $3.32 million of accrued interest at March 31, 2026, of which it expects to receive roughly $0.45 million by June 30, 2026. Income comes from cash, cash equivalents, short-term investments and restricted cash.
• Real estate and Forfeited Assets — At March 31, 2026 the Trust owned one real estate asset with an estimated carrying value of approximately $0.24 million and said future net proceeds will be negligible. Forfeited Asset activity is small: the nine months ended March 31, 2025 included about $0.02 million of net sale proceeds and $4.15 million distributed to Qualifying Victims from those proceeds.

Recent performance

At March 31, 2026 the Trust reported total assets of $61.9 million and total liabilities of $25.9 million, with cash, cash equivalents, short-term investments and restricted cash of approximately $58.29 million (including $0.70 million restricted). The change in carrying value of assets and liabilities, net for the latest 10-Q period was a $7.431 million increase, split between Qualifying Victims ($43 thousand) and Interestholders ($7.388 million). The nine months ended March 31, 2025 included approximately $4.62 million of general and administrative costs (about $2.73 million professional fees, $1.41 million payroll and other G&A, $0.26 million to the Liquidation Trustee, and $0.22 million of board member fees and expenses) and $1.16 million of development costs. Distributions declared from inception through September 25, 2025 totaled $433.16 million, with $421.56 million paid, and net distributions payable were $1.17 million as of September 25, 2025 versus $0.64 million at June 30, 2025. As of September 25, 2025 approximately $887.55 million of Class 3, Class 4 and Class 5 Claims had been allowed.

Strategy

The Trust's stated priorities are resolving the construction defect claim and related litigation, pursuing remaining recoveries from insurance and limited Causes of Action, completing the liquidation of its remaining real estate, and controlling general and administrative costs. It suspended additional distributions to Interestholders on August 3, 2023 pending the outcome of the construction defect investigation, and continues to administer the Plan's waterfall, including the Class A $75.00 threshold, the Class B $75.00 threshold, and 10% compounding from December 4, 2017. It enforces the Plan's 180-day forfeiture provisions for uncashed distributions, having sent final notice letters to certain Class A holders on February 1, 2022. Management expects existing cash, cash equivalents, short-term investments and restricted cash to fund liquidation activities over the next twelve months, while stating no assurance can be given.

Risks

• Unquantified construction defect exposure — The Trust states the amount of liability exposure for the construction defect claim cannot be determined and may exceed the estimated liquidation costs accrued as of March 31, 2026.
• Distribution suspension — The Supervisory Board suspended additional Trust distributions to Interestholders on August 3, 2023 pending the construction defect investigation, so the timing and amount of any future distributions are uncertain.
• Diminishing recoveries — Management states that remaining Causes of Action and the single remaining real estate asset (carrying value approximately $0.24 million at March 31, 2026) will produce negligible future proceeds compared with prior periods.
• Liquidity uncertainty — The Trust warns that due to the uncertain nature of insurance recoveries and construction defect costs, it cannot be certain current liquidity will cover all future financial needs even though it expects no deficiency in the next twelve months.

Outlook

Management expects the Trust to fund liquidation activities over the next twelve months from cash, cash equivalents, short-term investments and restricted cash, and foresees no liquidity deficiency in that period. It expects about $0.45 million of accrued interest to be received by June 30, 2026, but describes remaining Causes of Action and real estate proceeds as negligible. No assurance is given, because the construction defect liability and related costs remain unresolved and may exceed accrued estimates.