Woodbridge Liquidation Trust WBQNL

Woodbridge Liquidation Trust was created under a court approved plan to wind down the assets of the former debtor entities and to pursue causes of action on behalf of its interestholders. The trust, together with its wholly owned subsidiary Wind Down Entity LLC and the remaining debtor entities, carries out the liquidation process by prosecuting litigation, collecting settlements, managing real estate holdings, and distributing cash to holders of Class A and Class B interests. Its sole purpose is to convert the trust's assets into cash for distribution, and it has no objective to continue or engage in any trade or business except as reasonably necessary to fulfill that purpose. The trust is administered by a liquidation trustee under the oversight of a supervisory board, and its activities are subject to the bankruptcy court's approval.

Revenue is generated almost exclusively from liquidation activities. The trust receives cash from the net proceeds of settlements of various causes of action, from remittances made by its Wind Down Entity after it sells real estate assets and retains required reserves, from Fair Fund recoveries awarded by the SEC, and from assets forfeited to the Department of Justice by former principals of the debtors. Additional inflows come from collecting on outstanding claims and from the sale of the single remaining real estate asset. These proceeds are used to pay trust expenses, maintain reserves for contingent liabilities, and fund distributions to interestholders according to the plan's priority rules.

Within the niche of liquidation trusts Woodbridge Liquidation Trust occupies a distinctive position because it emerged from a large scale Ponzi scheme that involved more than 10,000 investors and over 1,200,000,000 dollars of alleged fraud. The trust holds a substantial portfolio of allowed claims, including approximately 702,700,000 dollars of note claims, 6,000,000 dollars of general unsecured claims, and 178,900,000 dollars of unit claims as of September 2025, in addition to the residual value of one real estate asset. This sizable claim base gives it leverage in negotiations and litigation, distinguishing it from many smaller liquidation trusts that have fewer assets to pursue. The trust's success depends on its ability to resolve remaining causes of action and to manage the construction defect claim affecting its Wind Down Entity, which remains the primary obstacle to final distribution and termination.

The trust's customers are principally its interestholders, who are the former noteholders, unitholders, and general unsecured creditors of the debtor entities entitled to receive distributions under the plan. In addition, the trust interacts with counterparties such as Comerica Bank, whose settlement contributed to a distribution, and various insurers, prior owners, contractors, and other parties involved in the construction defect litigation concerning the Wind Down Entity's development. The trust also engages with buyers of its sole remaining real estate asset and with the Department of Justice regarding forfeited assets. While specific counterparty names beyond those disclosed are not itemized, the trust's interactions are limited to these claimants and to the parties involved in its ongoing litigation and asset sales.