NOTHING THAT FOLLOWS CAN BE TAKEN AS INVESTMENT ADVICE. YOUR PERSONAL DUE DILIGENCE IS REQUIRED TO DECIDE TO KEEP OR SELL AN INTEREST IN THE Woodbridge Liquidation Trust
Many folks (but apparently not all) in the Woodbridge note program received a large packet in the U.S. mail this week offering to purchase your interest in the bankruptcy trust. Your interest at this point, remember is expressed in ‘units’ not dollars – via the bankruptcy process everyone’s Notes and investment units (if you invested in those) were converted via an equation in to ‘units’ in the bankruptcy trust.
The moment I heard Michael Goldberg explain his plans to create publicly traded shares of the trust interest – I knew hedge funds would be cocked and loaded to blast out offers for those shares. Contrarian Capital is the first. They are offering $10/share of your trust interest. AS I AM UNDERSTANDING THE OFFER, this calcs out to be about 11.8 cents on the dollar of the money you put into Notes. That is $150,000 of Notes you originally held would net you $17,700 from this hedge fund.
These are simply shrewd investors looking to triple or quadruple their money buying shares. Here’s the link to their website if you like to see more about their business: Contrarian Capital Management LLC
They have studied the underlying real estate (which is semi public information, in that its listed for the bankruptcy trust folks to review), made an estimation of sales prices and timing and tendered this offer. This is the first offer. I’m guessing there will be a handful more offers from other hedge funds dropping into your mail box.