Woodbridge Group wins court approval of amended plan of liquidation

By Caroline Salls

Pittsburgh, Oct. 26 – Woodbridge Group of Cos., LLC’s first amended plan of liquidation was confirmed Friday by the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement filed with the plan, the plan provides for the creation of a wind-down entity, which will own many of Woodbridge’s assets and will sell those assets to generate cash, and a liquidation trust, which will own the wind-down entity and will distribute that cash to creditors and will prosecute or settle litigation claims against third parties.

Michael Goldberg, who was designated by the Securities and Exchange Commission and is a member of Woodbridge’s new board of managers, is the proposed liquidation trustee.

Cash will be distributed by the liquidation trust to noteholders, unitholders and other creditors “both up-front and over time” as the wind-down entities sell the company’s properties, the disclosure statement said.

Noteholders, general unsecured creditors and unitholders will initially be paid by receiving class A liquidation trust interests that entitle them to cash distributions.

Holders of standard note claims and general unsecured claims will receive one trust interest for each $75.00 of net claims.

Holders of allowed unit claims will receive 72.5% of one class A liquidation trust interest and 27.5% of one class B liquidation trust interest for each $75.00 of net unit claims held.

Holders of non-debtor loan note claims who are successful in their litigation will receive cash from the trust in the amount of their secured claim, plus post-confirmation interest.

Holders of subordinated claims will retain a right to receive cash that remains in the liquidation trust after final administration of all trust assets and after satisfaction in full of all senior payment rights.

All equity interests will be cancelled, and holders will not receive any distribution.

The company said the initial distribution fund will include cash in a range targeted at $42.5 million to $85 million.

Woodbridge is a Sherman Oaks, Calif.-based next generation financial products company that filed for bankruptcy on Dec. 4, 2017. The Chapter 11 case number is 17-12560.

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