Woodbridge Liquidation Trust Reports Decrease in Net Assets and Suspends Distributions

Woodbridge Liquidation Trust reported its financial results for the three and nine months ended March 31, 2026, revealing a decrease in net assets in liquidation. As of March 31, 2026, total net assets in liquidation stood at $35.9 million, down from $37.3 million as of June 30, 2025. The decline was primarily attributed to a reduction in the carrying value of assets and liabilities, which decreased by approximately $2.6 million during the quarter. The Trust's cash, cash equivalents, and short-term investments totaled $57.6 million, a slight decrease from $60.2 million in the previous fiscal period.

In the nine-month period ending March 31, 2026, the Trust's net assets in liquidation decreased by approximately $1.4 million, driven by a $1.7 million reduction in the carrying value of assets and liabilities. The Trust accrued additional costs related to a construction defect claim against one of its subsidiaries, amounting to approximately $1.1 million, and increased its estimated completion date for liquidation activities from February 15, 2027, to February 15, 2028. This extension is necessary to address ongoing litigation and repair costs associated with the construction defect claim.

Operationally, the Trust has resolved nearly all of its Causes of Action and liquidated most of its real estate assets, retaining only one single-family home with a net carrying value of approximately $0.24 million. The Trust's activities are now primarily focused on managing the construction defect claim and related litigation. As of March 31, 2026, the Trust had accrued approximately $8.3 million for estimated costs related to this claim, which is subject to change as additional information becomes available.

The Trust has suspended distributions to interest holders pending the resolution of the construction defect claim, which has created uncertainty regarding future distributions. The Liquidation Trustee has indicated that it is unlikely there will be further distributions until the ongoing litigation is resolved. As of March 31, 2026, distributions payable to interest holders totaled approximately $0.69 million, reflecting a decrease from previous periods. The Trust's outlook remains cautious, with expectations to complete liquidation activities by February 15, 2028, although this timeline may be extended further based on the resolution of outstanding claims and litigation.