Woodbridge Liquidation Trust Reports Financial Results with $43.6M Net Asset Value

Woodbridge Liquidation Trust reported its financial results for the three and six months ended December 31, 2024, revealing a total net asset value in liquidation of $43.6 million, an increase from $39.9 million as of June 30, 2024. The Trust's cash, cash equivalents, and short-term investments rose to $57.5 million from $56 million during the same period. However, restricted cash saw a significant decline, dropping from $4.9 million to $734,000, primarily due to distributions made to qualifying victims. The Trust's total liabilities decreased from $23.5 million to $21.6 million, reflecting a reduction in accrued liquidation costs.

In comparison to the previous fiscal period, the Trust's net assets in liquidation for qualifying victims decreased by approximately $4.1 million, attributed to a distribution of $4.15 million made during the quarter. Conversely, net assets for all interest holders increased by about $7.8 million, driven by a rise in the carrying value of assets and liabilities. The Trust recognized an insurance receivable of approximately $4.32 million related to a construction defect claim, which contributed to the overall increase in net assets.

Operationally, the Trust has made significant progress in liquidating its assets, having disposed of approximately 149 properties for net sales proceeds of around $576.5 million since its inception. As of December 31, 2024, the Trust owned only two real estate assets with a net carrying value of approximately $480,000. The Trust's ongoing litigation efforts have also yielded approximately $3.55 million from settlements of various causes of action during the six-month period, although future recoveries are expected to be minimal due to the limited number of remaining claims.

Looking ahead, the Trust anticipates completing its liquidation activities by the end of the fiscal year 2026. However, the ongoing construction defect claim poses uncertainties regarding future distributions to interest holders. The Trust has suspended additional distributions pending the resolution of this claim, which may impact the timing and amount of future cash distributions. The Trust's management continues to evaluate its liquidity position, which remains stable with current cash and investments, but acknowledges potential risks associated with the construction defect claim and other operational costs.