Enterprising Investor
12 months ago
Settlement (11/10/23)
As of November 10, 2023, Woodbridge Liquidation Trust entered into a definitive written agreement to settle its pending litigation against the defendant law firm Rome McGuigan P.C. and attorney Brian Courtney in the cases of Goldberg v. Halloran & Sage LLP, et al., Case No. 19STCV42900 (Cal. Super. Ct., L.A. Ctny.), which commenced on December 2, 2019, and Goldberg v. Rome McMGuigan, P.C., et al., Case No. CV 20-9958-JFW(SK) (U.S. Dist. Ct. Cent. Dist. Cal.), which commenced October 28, 2020 (the “Actions”). In the Actions, the Trust asserted claims against Robert Shapiro’s former legal counsel for aiding and abetting securities fraud, aiding and abetting conversion, aiding and abetting common-law fraud, aiding and abetting breach of fiduciary duty, professional negligence, and negligent misrepresentation. The terms of the settlement are contained in a Settlement Agreement and Mutual Release among Rome McGuigan P.C., Mr. Courtney, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.
Under the agreement, the Trust has agreed to dismiss its claims against Rome McGuigan P.C. and Mr. Courtney for $5,000,000. Such amount is expected to result in proceeds to the Trust of approximately $3,313,000 million, net of attorneys’ fees and other litigation expenses.
The settlement is subject to the California Superior Court granting a motion by Rome McGuigan P.C. and/or Mr. Courtney for a court order finding that the settlement has been made by the parties in good faith (unless such condition is waived in writing by both Rome McGuigan P.C. and Mr. Courtney). Payment of the settlement amount is due within 30 days after such order being entered.
The settlement agreement relates to the Trust’s claims only against defendants Rome McGuigan P.C. and Mr. Courtney and does not effect a release of the Trust’s claims against any of the other defendants in the Actions. No assurance can be given that the recovery, if any, by the Trust against any other defendant or defendants in the Actions will realize a comparable amount or be obtained on similar terms.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123053511/ef20014723_8k.htm
Enterprising Investor
1 year ago
Settlement (8/01/23)
On August 1, 2023, Woodbridge Liquidation Trust (the “Trust”) agreed to settle its pending litigation against the defendant law firm Davis Graham & Stubbs LLP and its partner S. Lee Terry, Jr. in the case of Goldberg v. Halloran & Sage LLP, et al., Case No. 19STCV42900 (Cal. Super. Ct., L.A. Ctny.) (the “Action”). In the Action, which commenced on December 2, 2019, the Trust asserted claims against Robert Shapiro’s former legal counsel for aiding and abetting securities and other fraud, aiding and abetting breach of fiduciary duty, negligent misrepresentations, professional negligence, and aiding and abetting conversion. The terms of the settlement are contained in a settlement agreement among Davis Graham & Stubbs LLP, Mr. Terry, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.
Under the agreement, the Trust has agreed to dismiss its claims against Davis Graham & Stubbs LLP and Mr. Terry for $25,500,000. Such amount is expected to result in proceeds to the Trust of approximately $17 million, net of attorneys’ fees and other litigation expenses.
The settlement is subject to the California Superior Court granting a motion by Davis Graham & Stubbs LLP and Mr. Terry for a court order finding that the settlement has been made by the parties in good faith (unless such condition is waived in writing by both Davis Graham & Stubbs LLP and Mr. Terry). Payment of the settlement amount is due within 30 days after such order being entered.
The settlement agreement relates to the Trust’s claims only against defendants Davis Graham & Stubbs LLP and Mr. Terry and does not effect a release of the Trust’s claims against any of the other defendants in the Action. No assurance can be given that the recovery, if any, by the Trust against any other defendant or defendants in the Action will realize a comparable amount or be obtained on similar terms.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123038151/brhc20056920_8k.htm
Enterprising Investor
1 year ago
Settlement (7/06/23)
On June 29, 2023, Woodbridge Liquidation Trust (the “Trust”) agreed to settle its pending litigation against the defendant law firm Halloran & Sage LLP and its partner Richard P. Roberts in the case of Goldberg v. Halloran & Sage LLP, et al., Case No. 19STCV42900 (Cal. Super. Ct., L.A. Ctny.) (the “Action”). In the Action, which commenced on December 2, 2019, the Trust asserted claims against Robert Shapiro’s former legal counsel for aiding and abetting securities and other fraud, aiding and abetting breach of fiduciary duty, negligent misrepresentations, professional negligence, and aiding and abetting conversion. The terms of the settlement are contained in a settlement agreement among Halloran & Sage LLP, Mr. Roberts, and Michael Goldberg as Liquidation Trustee on behalf of the Trust.
Under the agreement, the Trust has agreed to dismiss its claims against Halloran & Sage LLP and Mr. Roberts in exchange for the remaining amount of the law firm’s applicable liability insurance policies. Such amount is expected to result in proceeds to the Trust of approximately $13 million, net of attorneys’ fees and other litigation expenses.
The settlement is subject to the California Superior Court granting a motion by Halloran & Sage LLP for a court order finding that the settlement has been made by the parties in good faith. Payment of the settlement amount is due within 21 days of such order being entered.
The settlement agreement relates to the Trust’s claims only against defendants Halloran & Sage and Mr. Roberts and does not effect a release of the Trust’s claims against any of the other defendants in the Action. No assurance can be given that the recovery, if any, by the Trust against any other defendant or defendants in the Action will realize a comparable amount or be obtained on similar terms.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123033400/brhc20055576_8k.htm
Enterprising Investor
1 year ago
Settlement (6/27/23)
On June 27, 2023, Woodbridge Liquidation Trust (the “Trust”) agreed to settle its pending fraudulent transfer claims against Kenneth Halbert in the pending action Goldberg v. Halbert (In re Woodbridge Grp. of Cos., LLC), Adv. No. 19-51027 (Bankr. D. Del.). The terms of the settlement are contained in a settlement agreement between Michael Goldberg, as Liquidation Trustee of the Trust, and Mr. Halbert. Under the agreement, the Trust has agreed to dismiss its claims against Mr. Halbert for the sum of $4 million, payable in cash to the Trust on or before August 15, 2023.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123032118/brhc20055138_8k.htm
Enterprising Investor
1 year ago
Subsequent Events
The Company evaluates subsequent events up until the date the unaudited consolidated financial statements are issued.
Sale of Real Estate Asset
During the period from April 1, 2023 through May 12, 2023, the Company sold one property located in the state of New York and received net proceeds of approximately $1,557,000.
Distributions
On May 10, 2023, a distribution in the amount of approximately $25,000,000 was declared which represented approximately $2.18 per Class A Interest. The distribution included (i) a cash distribution on account of then-allowed claims in the amount of approximately $24,880,000 which is payable on or about June 12, 2023 to holders of Class A Interests as of the close of business on May 31, 2023, and (ii) a deposit of approximately $120,000 into a restricted cash account, payable as (a) claims are resolved, (b) claims that were recently allowed, (c) addresses for holders of uncashed distribution checks are obtained, (d) pending avoidance actions are resolved and (e) further beneficiary information is received.
Causes of Action
In April 2023, the Trust reached a settlement in principal with Bailey Cavalieri LLC and Thomas Geyer that will resolve all litigation between them.
Forfeited Assets
During the period from April 1, 2023 through May 12, 2023, the Company realized net proceeds of approximately $21,000 from the sale of Forfeited Assets.
Other Refunds
During the period from April 1, 2023 through May 12, 2023, the Company received approximately $20,000 of escrow receivables relating to a sold single-family home.
Trust Accounts
During the period from April 1, 2023 through May 12, 2023, the Company transferred the balances in the Trust Accounts to one of the banking institutions with which it has a depositor relationship.
Enterprising Investor
1 year ago
Woodbridge Liquidation Trust Announces Cash Distribution (5/11/23)
GLENDALE, Calif.--(BUSINESS WIRE)--Woodbridge Liquidation Trust (the “Trust”) announced that its Liquidation Trustee, with the approval of the Trust’s Supervisory Board, has declared an aggregate cash distribution of $25 million on the Trust’s Class A Liquidation Trust Interests (the “Class A Interests”). This amount includes a reserve of approximately $120,000 for amounts that are or may become payable (a) in respect of Class A Interests that may be issued in the future upon the allowance of unresolved bankruptcy 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 checks mailed in respect of prior distributions, (d) for distributions that were withheld due to pending avoidance actions, and (e) to holders of Class A Interests for which the Trust is awaiting further beneficiary information.
The distribution amounts to $2.18 per Class A Interest, and will be paid on or about June 12, 2023 to holders of record of Class A Interests as of close of business on May 31, 2023.
Regarding the distribution, the Trust’s Liquidation Trustee Michael Goldberg said, “I am pleased to be able to announce this, the Trust’s eleventh interim liquidating distribution to its holders. As the Trust is nearing the end of its real estate portfolio liquidation process, I would remind all investors in the Trust that future distributions are expected to be principally reliant on future recoveries from the Trust’s litigation. Such recoveries are uncertain and the amount and timing of such recoveries are difficult to determine.”
About Woodbridge Liquidation Trust:
Woodbridge Liquidation Trust is a Delaware statutory trust that, together with its wholly-owned subsidiary Woodbridge Wind-Down Entity LLC, was formed on February 15, 2019 to implement the terms of the First Amended Joint Chapter 11 Plan of Liquidation dated August 22, 2018 of Woodbridge Group of Companies, LLC and Its Affiliated Debtors (the “Plan”). The purpose of the Trust is to prosecute various causes of action acquired by the Trust pursuant to the Plan, to litigate and resolve claims filed against the debtors under the Plan, to pay allowed administrative and priority claims against the debtors (including professional fees), to receive cash from certain sources and, in accordance with the Plan, to make distributions of cash to holders of interests in the Trust subject to the retention of various reserves and after the payment of Trust expenses and administrative and priority claims. For more information, visit www.woodbridgeliquidationtrust.com.
https://www.businesswire.com/news/home/20230511005964/en/Woodbridge-Liquidation-Trust-Announces-Cash-Distribution/
Enterprising Investor
2 years ago
Woodbridge Liquidation Trust sells last SFR (3/30/23)
On March 30, 2023, the registrant, through a wholly-owned subsidiary (collectively with the registrant, the “Company”), completed the sale of its real property asset located at 638 Siena Road in Los Angeles, California, to a private entity for a cash purchase price of $26,000,000. The sale took place pursuant to a purchase and sale agreement entered into on March 23, 2023.
The property was the last single-family home in the Company’s asset portfolio, and the Company believes that the completion of this transaction represents a substantial step in the progress of the Company’s asset liquidation activities.
Neither the Company nor any of its affiliates, and neither any director or officer of the Company nor to the knowledge of the registrant any associate of any such director or officer, has any material relationship with the purchasers, other than in respect of the transaction.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123015665/brhc10050790_8k.htm
Enterprising Investor
2 years ago
Other Events (2/23/23)
On February 20, 2023, the registrant, through a wholly-owned subsidiary (collectively with the registrant, the “Company”), cancelled an agreement to sell its real property asset located in Los Angeles, California.
The agreement, previously reported, was for the sale to a private entity of the last single-family home remaining in the Company’s asset portfolio. The Company cancelled the agreement following the prospective purchaser’s refusal to proceed to a closing. Neither the Company nor any of its affiliates has any material relationship with the prospective purchaser other than in respect of the transaction.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123008270/brhc10048544_8k.htm
Enterprising Investor
2 years ago
Other Events (2/06/23)
On January 30, 2023, the registrant, through a wholly-owned subsidiary (collectively with the registrant, the “Company”), entered into an agreement to sell its real property asset located at 638 Siena Road in Los Angeles, California to a private entity.
The 638 Siena Road property is the last single-family home remaining in the Company’s asset portfolio. The closing of the sale is subject to a number of contingencies, including the satisfactory completion of the purchaser’s due diligence. No assurance can be given that all such contingencies will be satisfied or that the closing of the sale will occur.
Neither the Company nor any of its affiliates has any material relationship with the purchaser other than in respect of the transaction.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036123004697/brhc10047639_8k.htm
Enterprising Investor
2 years ago
Woodbridge Liquidation Trust Announces Cash Distribution (6/16/22)
GLENDALE, Calif.--(BUSINESS WIRE)--Woodbridge Liquidation Trust (the “Trust”) announced that its Liquidation Trustee, with the approval of the Trust’s Supervisory Board, has declared an aggregate cash distribution of $65 million on the Trust’s Class A Liquidation Trust Interests (the “Class A Interests”). This amount includes a reserve of approximately $850,000 for amounts that are or may become payable (a) in respect of Class A Interests that may be issued in the future upon the allowance of unresolved bankruptcy 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 checks mailed in respect of prior distributions, (d) for distributions that were withheld due to pending avoidance actions, and (e) to holders of Class A Interests for which the Trust is awaiting further beneficiary information.
The distribution amounts to $5.63 per Class A Interest, and will be paid on or about July 15, 2022 to holders of record of Class A Interests as of close of business on June 30, 2022.
Regarding the distribution, the Trust’s Liquidation Trustee Michael Goldberg said, “I am pleased to be able to announce this additional interim distribution to our holders. As the Company is approaching the end of its real estate portfolio liquidation activities and has only a small number of real estate assets remaining, I would remind all investors in the Trust that future distributions will be limited. Once the Company’s remaining real property assets have been liquidated and the net proceeds resulting therefrom, net of reserves, have been distributed, further distribution(s) are expected to be materially reliant on future recoveries from litigation. Such recoveries are uncertain and the amount and timing of such recoveries are difficult to determine.”
About Woodbridge Liquidation Trust:
Woodbridge Liquidation Trust is a Delaware statutory trust that, together with its wholly-owned subsidiary Woodbridge Wind-Down Entity LLC, was formed on February 15, 2019 to implement the terms of the First Amended Joint Chapter 11 Plan of Liquidation dated August 22, 2018 of Woodbridge Group of Companies, LLC and Its Affiliated Debtors (the “Plan”). The purpose of the Trust is to prosecute various causes of action acquired by the Trust pursuant to the Plan, to litigate and resolve claims filed against the debtors under the Plan, to pay allowed administrative and priority claims against the debtors (including professional fees), to receive cash from certain sources and, in accordance with the Plan, to make distributions of cash to holders of interests in the Trust subject to the retention of various reserves and after the payment of Trust expenses and administrative and priority claims. For more information, visit www.woodbridgeliquidationtrust.com.
https://www.businesswire.com/news/home/20220616005866/en/Woodbridge-Liquidation-Trust-Announces-Cash-Distribution
Enterprising Investor
2 years ago
Woodbridge Liquidation Trust Completes Sale, Terminates Line of Credit (5/18/22)
On May 16, 2022, the registrant, through certain of its wholly-owned subsidiaries, terminated the Loan and Security Agreement dated June 19, 2020, as amended, between such subsidiaries as borrowers or guarantor and City National Bank of Florida as lender. Neither the registrant nor any of its affiliates has any material relationship with the lender other than in respect of the agreement. The agreement set forth the terms of the Company’s $25,000,000 revolving line of credit, and was terminated by the registrant in connection with the sale of its residential real property located at 642 St. Cloud Road in Los Angeles, California, which was one of two properties that had served as collateral for the line of credit. No indebtedness under the line of credit was outstanding as of the date of termination and no early termination penalties were incurred by the registrant in connection with its termination of the agreement.
Item 2.01 – Completion of Acquisition or Disposition of Assets
On May 16, 2022, the registrant, through a wholly-owned subsidiary (collectively with the registrant, the “Company”), completed the sale of one of its real estate assets for a cash purchase price of $58,500,000. The asset, a residential real property located at 642 St. Cloud Road in Los Angeles, California, was sold to a private entity pursuant to a purchase and sale agreement dated October 21, 2021, as amended.
Neither the Company nor any of its affiliates, and neither any director or officer of the Company nor to the knowledge of the registrant any associate of any such director or officer, has any material relationship with the purchaser, other than in respect of the transaction.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1785494/000114036122019773/ny20004240x1_8k.htm
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