Woodbridge Liquidation Trust Reports Financial Results for Quarter Ending September 30, 2025

Woodbridge Liquidation Trust reported its financial results for the three months ending September 30, 2025, revealing a total net asset value in liquidation of $38.036 million, an increase from $37.334 million at the end of the previous quarter. The Trust's total assets decreased slightly to $63.826 million from $64.154 million, primarily due to a reduction in cash and cash equivalents, which fell to $59.497 million from $60.230 million. The Trust's liabilities also decreased to $25.790 million from $26.820 million, reflecting a decline in accrued liquidation costs.

In comparison to the same period last year, the Trust's net assets in liquidation for all interest holders increased by approximately $0.702 million, driven by a net change in the carrying value of assets and liabilities. This contrasts with the previous year, where the net assets in liquidation for all interest holders increased by $3.663 million. The Trust did not declare any distributions during the current quarter, consistent with its ongoing strategy to manage cash flow amid pending litigation related to a construction defect claim.

Operationally, the Trust continues to focus on resolving a significant construction defect claim associated with a single-family home sold by its Wind-Down Entity. As of September 30, 2025, the Trust has accrued approximately $24.585 million in liquidation costs, which include estimated development costs and general administrative expenses. The Trust's management anticipates that the liquidation process will extend until February 15, 2027, following a motion to the Bankruptcy Court that was granted to extend the termination date.

The Trust's financial activities during the quarter included recording a receivable of approximately $0.44 million from its primary and excess insurers related to the construction defect claim. Additionally, the Trust recognized $0.4 million from the settlement of various causes of action. The Trust's remaining real estate asset has a net carrying value of approximately $0.24 million, and it has liquidated all but one of its properties since the Plan's effective date.

Looking ahead, the Trust's liquidity position remains stable, with cash, cash equivalents, and short-term investments totaling approximately $60.67 million as of September 30, 2025. However, the Trust's ability to make future distributions to interest holders remains uncertain due to the ongoing litigation and the need to resolve the construction defect claim. The Trust's management will continue to assess its financial position and may adjust its distribution strategy based on the outcomes of these legal proceedings.