Monday, December 6, 2021

Another Sale in late November

The Woodbridge trust had another listing close in late November for $9.46 million; it was listed at $10.75 million.

Here’s a link to view the property,-CA-90210_rb/20532891_zpid/?

I’m still researching a solid answer on when/how the Comerica Bank settlement will come our way … if anyone knows more on that, buzz me back please.


Monday, October 18, 2021

Distribution Coming

Sorry I am late getting this out … had lots of family stuff last week. Here are the basics.

Trustee declared an aggregate cash distribution of approximately $40 million on the Trust’s Class A Liquidation Trust Interests (the “Class A Interests”). This amount includes a reserve of approximately $900,000 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 bankruptcy claims, (c) to holders of Class A Interests who failed to cash checks mailed in respect of previous distributions, (d) as distributions withheld due to pending avoidance actions, and (e) to holders of Class A Interests from whom the Trust is awaiting further beneficiary information.

The distribution amounts to $3.44 per Class A Interest, and will be paid on or about October 29, 2021 to holders of record of Class A Interests as of close of business on October 22, 2021.

Here’s a link to read more.


Friday, October 1, 2021

Small Update on the other Lawsuits

I got a short update from the lawyer who’s litigating on behalf of the trustee against the various law firms. Very brief, but the update was the firms he is suing (on your behalf) are wrangling about “Jurisdiction issues”, i.e. what court is the proper venue to hear the case.

Pretty normal stalling tactics I’m guessing. He’s expecting all these preliminary motions will be settled in early 2022. Once those pre-issues are dealt with a trial date will be set; that’s when the case heads to mediation to get settled.

My guess is there is zero chance any of these suits ever see the inside of court room – way too much risk for the firms being sued to venture an actual trial. BUT real settlement talks won’t start until there’s a hard trial date set by the trial court.


Monday, September 27, 2021

$54.5 Million Just Came in!

Woodbridge Liquidation Trust (the “Trust”) agreed to the terms of a settlement of two pending actions against Comerica Bank. The terms of the settlement, reached following negotiations with Comerica Bank and the plaintiffs in a putative class action against Comerica Bank in the United States District Court for the Central District of California (the “District Court”), are the subject of a Settlement Agreement among the plaintiffs, Comerica Bank, and the Trust (the “Settlement Agreement”).

Comerica Bank is the institution at which Woodbridge Group of Companies, LLC and its affiliated debtors in bankruptcy (the “Debtors”) maintained all of their bank accounts,
and these actions arise out of the Debtors’ former banking relationships with Comerica Bank.

The Settlement Agreement resolves two actions. One of the actions, captioned In re Woodbridge Investments Litigation, Case No. 2:18-cv-00103-DMG-MRW (C.D. Cal.), is a
consolidated putative class action in District Court brought on behalf of former noteholders and unitholders of the Debtors (the “California Class Action”).

The California Class Action is comprised of five separate lawsuits filed between January 4, 2018 and April 26, 2018 and, as consolidated, asserted claims for aiding and abetting fraud, aiding and abetting breach of fiduciary duty, negligence, and violations of California’s unfair competition law. The Trust believes that it is the largest member of the putative class in the California Class Action, as holder of approximately 60.9% of all claims against Comerica based on the claims contributed to the Trust by former investors of the Debtors.

The other action resolved by the settlement, captioned Michael I. Goldberg as trustee for the Woodbridge Liquidation Trust v. Comerica Bank, Adv. Pro. No. 20-ap-50452-BLS
(Bankr. D. Del.), is an adversary proceeding pending in the United States Bankruptcy Court for the District of Delaware, in which the Trust has asserted claims against Comerica Bank for
fraudulent transfers under the California Civil Code

Under the Settlement Agreement, Comerica Bank has agreed to pay (including through its insurers) an aggregate of $54.5 million, consisting of $54.2 million to settle the
California Class Action (the “Class Payment”) and $300,000 to settle the Delaware Adversary Action (the “FT Payment”). The Class Payment is intended to provide recoveries to
members of the plaintiff class and to fund, in amounts to be determined by the District Court, the legal fees of plaintiffs’ counsel in the California Class Action, not to exceed 25% of the
California Class Action settlement payment, the costs of administering the settlement, and certain incentive award for the class representatives. Under the Settlement Agreement,
Comerica Bank (and certain related parties) is required to be released from all claims advanced, or that could have been advanced, related to the facts alleged in the California Class Action or the Delaware Adversary Action.

The settlement amount is to be paid within ten business days of the Settlement Effective Date (as defined in the Settlement Agreement).


Friday, July 30, 2021

Property Listings & Sale Progress

I haven’t found much on the progress “our” listings have had in the Los Angeles area.

I’m writing this to solicit input from others out there who are tracking listings, and the ‘under contract’ updates (in California they refer to this as ‘in escrow’). Does anyone have updates to pass on?

Thanks for the help.


Monday, June 21, 2021

IRS form 4684

I amazed myself that I was able to get one of the attorneys for the Woodbridge trust to respond to my question this morning, on the timing of the IRS forms going out (so folks can file their taxes for 2020).

Good news is those forms optimistically will be in the mail to us a week from today. More likely he said June 30 would be the mail drop day.

So sooner than later is the report for the day.


Thursday, June 17, 2021

Distribution is Here

Just a quick note … looks like the June 15th distribution was out prompt. I’m seeing several folks post in that their checks arrived.

Stay cool.

Here’s to the next distribution!