Extension of the Trustee

Recently the Trustee office issued its 10-Q https://woodbridgeliquidationtrust.com/wp-content/uploads/2024/02/AS-FILED-Woodbridge-Liquidation-Trust-Q2-2024.pdf

communication stating, among other items that

1. they have right at $40 million of cash,

2. one more piece of real estate to settle,

3. still several of the law suites filed on our behalf against the various law firms, and

4. a newer development – one of the homes the Trustee completed construction for now has a ‘construction defect’ law suite filed against the Trustee for some alleged construction issues.

Due to the above the Trustee won’t end its life on February 15 2024 as originally scheduled. That end date has been push out to end of March 2026. Nothing is say the Trustee can’t close its office early understand, but that is the new official end date.

The bad news is with the construction defect suite, they won’t be making any cash distributions soon as they have to reserve for how that suite will shake out.

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.