Woodbridge Liquidation Trust

Woodbridge Liquidation Trust Annual Report - Plain Talk for Investors
Your no-nonsense guide to their year...

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1. What does Woodbridge do?

They’re the "cleanup crew" for bankrupt real estate projects. Their job? Sell leftover properties and assets to recover cash for investors. This year, they focused on final sales (mostly in Florida/California) and settling lingering lawsuits.

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2. Did they make money?

• 2023 Revenue: $85 million (down from $95 million in 2022)
• Total returned to investors since launch: $426 million
• Progress: 99.9% of properties sold – only one $240,000 asset remains.

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3. Wins 😎 vs. Challenges 🤕

• Wins:
  • Sold a Florida luxury condo project for $22 million
  • Won $22 million lawsuit against Comerica Bank (added to investor payouts)
  • Reduced unsold assets from 28 to just 1
• Challenges:
  • California mansion disaster: A $60 million property has structural damage (leaking pool, cracked walls, uneven floors). Repairs could cost millions and take 6+ months.
  • Insurance limbo: Still fighting to get repair costs covered.

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4. Financial Health Check

• Cash on hand: $40 million (down from $55 million last year)
• Debt remaining: $15 million (from old legal issues)
• Key stat: They’ve returned more than initially projected ($426M vs. $383M goal).

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5. What Could Go Wrong?

• The mansion could drain cash: If insurance doesn’t pay, repairs come from investor funds.
• Delays: Repairs won’t start until late 2025 due to permits and planning.
• Hidden damage: Soil tests or further inspections might reveal pricier problems.

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6. How They Compare to Competitors

Most rivals (like Blackstone) focus on active real estate investing. Woodbridge is a liquidation specialist – but since they’re nearly done selling assets, they’ll likely dissolve once cleanup finishes.

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7. Leadership & Strategy

New CEO Sarah Chen prioritized quick sales over holding out for higher prices. Result? They’re down to their last property. Now it’s all about resolving the California mansion issue and closing shop.

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8. What’s Next?

• Final property sale: That last $240,000 asset
• 3-6 months of mansion repairs (if permits arrive)
• Target end date: Late 2026 (if no new surprises)

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9. Outside Factors to Watch

• Insurance outcomes: Will they cover mansion repairs?
• Permit delays: Los Angeles approvals could drag out timelines.
• Soil test results: Bad news = higher costs.

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Bottom Line for Investors

The big picture: This is the final chapter. Most investor money has already been returned, and the remaining risks center on one problematic property.

Consider holding if:

• You’re comfortable with small, slow payouts as they resolve final issues
• You want closure on your investment

Consider selling if:

• You’d rather exit now than wait for the last 0.1% of asset sales
• The California mansion risks feel too uncertain

Think of this like waiting for a final check from a friend who’s almost done selling their vintage car – you’ll get paid, but it might take another year or two.

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Transparency note: Woodbridge provided clear financials but limited details about long-term liability risks beyond 2026. Proceed with caution if you prefer highly predictable timelines.