Woodbridge Group of Companies, LLC

Any unpaid obligations incurred by Woodbridge prior to December 4, 2017 are now frozen and will be considered as claims in the restructuring proceedings. We regret any hardship this may present you and we hope we can work through issues together.

(collapse all)

The debtor and various representatives of investor constituencies are in discussions about if and when payments to investors can resume. The official committee of unsecured creditors appointed in the case opposes commencing any such payments, and the Debtors are working to come up with a plan that will satisfy their concerns. Any such action will require court approval and the Debtors do not have a timeline to make that request at this time.

(collapse all)

During the pendency of the bankruptcy, we will not repay principal, however ultimate payout will be outlined in and determined through the bankruptcy process.

(collapse all)

The Proof of Claim form is an official document filed with the Bankruptcy Court that provides details about the amount a creditor was owed by the company prior to their Chapter 11 filing. Once the Bankruptcy Court has confirmed the procedure and deadline for filing claims, every creditor will be mailed a Proof of Claim form with instructions along with a Bar Date of Notice or deadline for submission. Any questions regarding filing a claim should be directed to your legal counsel. For further information on claims, please be sure to visit this website periodically for new updates.

(collapse all)

Unfortunately, we are not able to provide you legal advice. What I can tell you is that investors of record will be receiving proofs of claim forms with instructions in the coming weeks. In addition, claim forms are also available on the home page of this website.

(collapse all)

Creditors in a bankruptcy case and the priority of payment for their claims are distinguished by the type of claims they hold. In general, secured creditors—loans that are secured against Company assets—are in a priority position for payment. Unsecured creditors’ claims are satisfied after secured creditors receive payment from their collateral.

(collapse all)

Pursuant to the Uniform Commercial Code, liens must be perfected to be considered secure. Certain investors did not perfect their liens, and may be treated as unsecured creditors. However, part of the reason the Company filed for Chapter 11 was to maximize recovery for both secured and unsecured creditors. In addition, the Company, in concert with the Court, will continue to evaluate investors’ positions. We will communicate to you as we learn more.

(collapse all)

Prior to the filing, investors held liens in certain estate assets. This is subject to change through the proceeding, and we are holding in separate, secured accounts funds and assets to adequately protect investors’ interests.

(collapse all)

Currently all invested monies are frozen in respective accounts.

(collapse all)

All money held by Woodbridge as of December 4, 2017 is frozen in Woodbridge accounts and those investors are now creditors in the bankruptcy case.

(collapse all)

Unit holders own non-voting interests in WMF Management’s funds that entitle holders to distributions of available proceeds from the funds consisting of a preferred return, return of capital, and a profit participation. None of the Units has any voting rights.

Note holders own short-term notes issued by the funds and secured by a pledge of certain promissory notes and related loan and security agreements, deeds of trust or mortgages owned by the funds. Holders of Notes are entitled to a fixed rate of interest, generally ranging between 4.5 and 13 percent, payable on a monthly basis, and a repayment of principal upon maturity.

(collapse all)

No. All contracts remain in place pursuant to Bankruptcy Code.

(collapse all)

At this time, we cannot predict the amount holders of general unsecured claims will receive. The treatment of all claims will be determined through the Company’s Plan of Reorganization which will be filed toward the end of the case.

(collapse all)

Notices will go to custodians.

(collapse all)

Epiq and Garden City Group support the administration and dissemination of information throughout the bankruptcy proceeding. Specifically, Epiq is providing communications support via the investor website, call center and other mediums, while Garden City Group will provide all of the administrative and noticing support for the case.

(collapse all)

Woodbridge is in the process of rightsizing its balance sheet, and has filed voluntary Chapter 11 petitions to recapitalize its debt and maximize recovery for its creditors and investors. Through this, the Company will significantly reduce its debt and emerge as a financially stronger Company. Woodbridge is open and operating in the normal course of business during this time.

(collapse all)

Chapter 11 is a legal mechanism that allows a business to restructure its debt obligations while continuing normal day-to-day business operations without having to obtain all creditors’ consent.

(collapse all)

Woodbridge continues to be a leading developer of high-end real estate, however as the business has grown, among other things, increased operating and development costs have been exacerbated by the unforeseen costs associated with ongoing litigation and regulatory compliance. These and other factors that are under investigation by the new, independent management team led to a loss of liquidity, resulting in an inability to make our regularly scheduled one-year Notes payment due December 1, 2017.

In consideration of these factors, we determined that a recapitalization of our debt provides the most efficient and effective path to restructure debt and maximize recovery for our creditors and investors.

(collapse all)

Lawrence Perkins, of SierraConstellation Partners, has been appointed Chief Restructuring Officer, and Marc Beilinson, of Beilinson Advisory Group, has been appointed as Independent Manager. Mr. Perkins and Mr. Beilinson will lead, manage, and oversee the Company’s businesses during our time in Chapter 11, which we expect to exit as expeditiously as possible. Robert Shapiro has been removed from all Company oversight and involvement and is not receiving any compensation from the Company.

(collapse all)

Bob initiated the management changes so that the Company could focus on restructuring. The management changes were implemented as part of the plan to secure the Company’s future.

(collapse all)

No. New management intends to cooperate and work with the SEC and state regulators to the best of its ability to resolve the investigations.

(collapse all)

It is management’s intention to cooperate and work with the SEC and state regulators toward resolution of any investigations.

(collapse all)

Mercer Vine, Inc., Riverdale Funding, LLC, and Woodbridge Realty of Colorado, LLC are all excluded from the filing. Brokers employed by these companies own minority interests in their respective brokerages. Woodbridge anticipates entering into a shared services and discounted commission arrangement with these brokerage companies.

(collapse all)

In sum, our total invested capital is $985 million. Without unitholders our outstanding debt is $750 million to noteholders. Additional claims are being evaluated and may result in material additional claims against the companies.

(collapse all)

The Company estimates its current portfolio of assets has a value of more than $700 million. We are currently engaged in a process of interviewing investment bankers to provide an independent assessment of the value of our assets as well as raise capital to exit bankruptcy as expeditiously as possible.

(collapse all)

Yes. In support of this restructuring, we have obtained a commitment for up to $100 million in debtor-in-possession ("DIP") financing from Hankey Capital, LLC, providing sufficient liquidity to maintain operations and continue property development in the ordinary course during the bankruptcy process.

(collapse all)

No. We will be operating as usual, now and throughout the restructuring process.

(collapse all)

The Company intends to move through this process as promptly as possible and hopes to emerge in 2019.

(collapse all)

At this time, we are continuing to operate as usual. We are confident bankruptcy will give us the tools we need to emerge with the stronger financial foundation we need to continue to succeed but it is too early to say what operational changes will take place.

(collapse all)

We will be operating as usual, now and throughout the restructuring process. We remain committed to previously stated plans.

(collapse all)

For now the Company’s focus is on its current portfolio of assets. We may pursue new assets market conditions and court approval permitting.

(collapse all)

Please visit the home page of this website for information related to the filing.

(collapse all)

Copies of the chapter 11 petition and certain ongoing orders related to our case will be available on the home page of this website.

(collapse all)