Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Document Transition Report | false |
Entity File Number | 000-56115 |
Entity Registrant Name | Woodbridge Liquidation Trust |
Entity Central Index Key | 0001785494 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-7730868 |
Entity Address, Address Line One | 201 N. Brand Blvd., |
Entity Address, Address Line Two | Suite M |
Entity Address, City or Town | Glendale |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91203 |
City Area Code | 310 |
Local Phone Number | 765-1550 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Net
Consolidated Statements of Net Assets in Liquidation - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Real estate assets held for sale, net (Note 3) | ||
Single-family homes | $ 92,544 | $ 137,945 |
Other real estate assets | 1,998 | 2,910 |
Real estate assets held for sale, net | 94,542 | 140,855 |
Cash and cash equivalents | 34,393 | 45,369 |
Restricted cash (Note 4) | 9,098 | 8,273 |
Other assets (Note 5) | 5,731 | 5,473 |
Total assets | 143,764 | 199,970 |
Liabilities | ||
Accounts payable and accrued liabilities | 1,366 | 160 |
Distributions payable | 5,031 | 4,687 |
Accrued liquidation costs (Note 6) | 41,105 | 65,583 |
Total liabilities | 47,502 | 70,430 |
Commitments and Contingencies (Note 14) | ||
Net Assets in Liquidation | ||
Restricted for Qualifying Victims (Note 7) | 3,203 | 3,167 |
All Interestholders | 93,059 | 126,373 |
Total net assets in liquidation | $ 96,262 | $ 129,540 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets in Liquidation - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | $ 127,505 | $ 210,476 | $ 129,540 | $ 264,517 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 3,459 | 36 | 3,459 |
All Interestholders: | ||||
Change in carrying value of assets and liabilities, net | 8,266 | 1,974 | 45,922 | 7,529 |
Distributions (declared) reversed, net | (39,509) | (49,958) | (79,236) | (109,554) |
Net change in assets and liabilities | (31,243) | (47,984) | (33,314) | (102,025) |
Net Assets in Liquidation as of end of period | 96,262 | 165,951 | 96,262 | 165,951 |
Restricted for Qualifying Victims [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 3,203 | 0 | 3,167 | 0 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 3,459 | 36 | 3,459 |
All Interestholders: | ||||
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Distributions (declared) reversed, net | 0 | 0 | 0 | 0 |
Net change in assets and liabilities | 0 | 0 | 0 | 0 |
Net Assets in Liquidation as of end of period | 3,203 | 3,459 | 3,203 | 3,459 |
All Interestholders [Member] | ||||
Increase (Decrease) in Net Assets in Liquidation [Roll Forward] | ||||
Net Assets in Liquidation as of beginning of period | 124,302 | 210,476 | 126,373 | 264,517 |
Restricted for Qualifying Victims - | ||||
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
All Interestholders: | ||||
Change in carrying value of assets and liabilities, net | 8,266 | 1,974 | 45,922 | 7,529 |
Distributions (declared) reversed, net | (39,509) | (49,958) | (79,236) | (109,554) |
Net change in assets and liabilities | (31,243) | (47,984) | (33,314) | (102,025) |
Net Assets in Liquidation as of end of period | $ 93,059 | $ 162,492 | $ 93,059 | $ 162,492 |
Formation and Description of Bu
Formation and Description of Business | 9 Months Ended |
Mar. 31, 2022 | |
Formation and Description of Business [Abstract] | |
Formation and Description of Business | 1) Formation and Description of Business Formation Woodbridge Liquidation Trust (the “ On the Plan Effective Date, in accordance with the Plan, (a) the following assets automatically vested in the Trust: (i) an aggregate $5,000,000 in cash from the Debtors for the purpose of funding the Trust’s initial expenses of operation; (ii) certain claims and Causes of Action; (iii) all of the outstanding equity interests of the Wind-Down Entity (as defined below); and (iv) certain other non-real estate related assets, (b) the equity interests of Woodbridge Group of Companies, LLC and Woodbridge Mortgage Investment Fund 1, LLC (together, the “Remaining Debtors”) were cancelled and new equity interests representing all of the newly issued and outstanding equity interests in the Remaining Debtors were issued to the Trust, (c) all of the other Debtors other than the Remaining Debtors were dissolved and (d) the real estate-related assets of the Debtors were automatically vested in the Trust’s wholly-owned subsidiary, Woodbridge Wind-Down Entity LLC (the “Wind-Down Entity”) or one of the Wind-Down Entity’s wholly-owned single member LLCs (the “Wind-Down Subsidiaries”) formed to own the respective real estate assets. The Trust, the Remaining Debtors, the Wind-Down Entity and the Wind-Down Subsidiaries are collectively referred to herein as “the Company”. As further discussed in Note 10, the Trust has two classes of “Liquidation Trust Interests”: Class A Liquidation Trust Interests (the “Class A Interests”) and Class B Liquidation Trust Interests (the “Class B Interests”). The holders of Class A Interests and Class B Interests are sometimes collectively referred to herein as “Interestholders” or “All Interestholders” On December 24, 2019, the Trust’s Registration Statement on Form 10 became effective under the Securities Exchange Act of 1934 (the “Exchange Act”). The trading symbol for the Trust’s Class A Interests is WBQNL. Bid and ask prices for the Trust’s Class A Interests are quoted on the OTC Link ATS, the SEC-registered alternative trading system. The Class A Interests are eligible for the Depository Trust Company’s Direct Registration System (“DRS”) services. The Class B Interests are not registered with the SEC. Description of Business T he Trust is prosecuting various Causes of Action acquired by the Trust pursuant to the Plan and is resolving claims asserted against the Debtors. As of March 31, 2022, the Company is the plaintiff in several pending lawsuits (see Note 13 for additional information). The Trust is also liquidating its Forfeited Assets (see Note 7 for additional information) As of March 31, 2022, the Wind-Down Entity owns three luxury single-family homes in the Los Angeles, California area. The majority of the gross carrying value of the Wind-Down Entity’s real estate assets held for sale is concentrated in these single-family homes. In addition, construction is being completed on two other single-family homes that have been sold. The Wind-Down Entity is also liquidating its remaining four other real estate assets. See Note 3 for additional information The Company is required to liquidate its assets and distribute available cash to the Trust beneficiaries. The liquidation activities are carried out by the Trust, the Wind-Down Entity and the Wind-Down Subsidiaries. As of March 31, 2022 As discussed and defined in Note 2, the Company uses the Liquidation Basis of Accounting. The Trust currently operates as one reportable segment comprised primarily of real estate assets held for sale. Net assets in liquidation represent the remaining estimated aggregate value available to Trust beneficiaries upon liquidation, with no discount for the timing of proceeds (undiscounted). Due to the unpredictability of real estate selling prices, the impact of the COVID-19 virus (see below), as well as the uncertainty in the timing of liquidation of the real estate and other assets, net liquidation proceeds, other recoveries and actual liquidation costs may differ materially from the estimated amounts. The Trust’s expectations about the amount of any additional distributions and when they will be paid are subject to risks and uncertainties and are based on certain estimates and assumptions, one or more of which may prove to be incorrect. As a result, the actual amount of any additional distributions may differ materially, perhaps in adverse ways, from the Trust estimates. Furthermore, it is not possible to predict the timing of any additional distributions and any such distributions may not be made within the timing referenced in the consolidated financial statements. No assurance can be given that total distributions will equal or exceed the estimate of net assets in liquidation presented in the consolidated statements of net assets in liquidation. As a result of the COVID-19 outbreak, three of the Wind-Down Subsidiaries’ construction sites were closed for about three months during the summer of 2020. One construction site was closed for about two weeks in late December 2020. The continued spread of COVID-19 presents challenges for the Company and its vendors, mainly due to labor and product supply shortages. The Company continues to observe health and safety guidelines, including allowing its employees to work remotely. The Company will continue to evaluate the impact of the COVID-19 outbreak on its activities, including the cost of construction, the timing of completion of the single-family homes that are under construction, the time needed to market and sell the single-family homes, and the price at which these single-family homes will be sold The ultimate impact of the COVID-19 outbreak will depend on many factors, some of which cannot be foreseen, including the duration, severity, and geographic concentrations of the pandemic and any resurgence of the disease. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2) Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. These consolidated financial statements have been presented in accordance with Accounting Standards Codification (ASC) Subtopic 205-30, “Liquidation Basis of Accounting,” as amended by Accounting Standards Update (ASU) No. 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting.” The June 30, 2021 consolidated statement of net assets in liquidation included herein was derived from the audited consolidated financial statements but does not include all disclosures or notes required by U.S. GAAP for complete financial statements. All material intercompany accounts and transactions have been eliminated. Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the carrying amounts of assets and liabilities are revised in the period that available information supports a change in the carrying amount. Liquidation Basis of Accounting Under the liquidation basis of accounting, all assets are recorded at their estimated net realizable value or liquidation value, which represents the estimated amount of net cash that will be received upon the disposition of the assets (on an undiscounted basis). The measurement of real estate assets held for sale is based on the terms of current contracts (if any), estimates and other indications of sales value, net of estimated selling costs. To determine the value of real estate assets held for sale, the Company considered the three traditional approaches to value (cost, income and sales comparison) commonly used by the real estate appraisal community. The applicability and relevancy of each valuation approach as applied may differ by asset. In most cases, the sales comparison approach was accorded the greatest weight. This approach compares a property to other properties with similar characteristics that have recently sold. To validate management’s estimate, the Company also considers opinions from qualified real estate professionals and local real estate brokers and, in some cases, obtained third party appraisals. The estimated selling costs range from 5.0% to 6.0% of the property sales price. Liabilities, including estimated costs associated with implementing and completing the Plan, are measured in accordance with U.S. GAAP that otherwise applies to those liabilities. The Company has also recorded the estimated development costs to be incurred to prepare the assets for sale as well as the estimated holding costs to be incurred until the projected sale date and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company. When estimating development costs, the Company considered third party construction contracts and estimates of costs to complete based on construction status, progress and projected completion timing. Estimated development costs also include the costs of design and furnishings necessary to prepare and stage the homes for marketing. Holding cost estimates consider property taxes, insurance, utilities, maintenance and other costs to be incurred until the sale of the property is closed. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company. These estimated amounts are presented in the accompanying consolidated statements of net assets in liquidation. All changes in the estimated liquidation value of the Company’s real estate held for sale, or other assets and liabilities are reflected as a change to the Company’s net assets in liquidation. The Company does not record any amount from the future settlement of unresolved Causes of Action or recoveries from Fair Fund or Forfeited Assets (including those that may be settled, but subject to court or other regulatory agency approval) in the accompanying consolidated financial statements since they cannot be reasonably estimated. The amount recovered may be material to the Company’s net assets in liquidation. On a quarterly basis, the Company reviews the estimated net realizable values, liquidation costs and the estimated date of the completion of the liquidation of the Company and records any significant changes. The Company will also revalue an asset when it is under contract for sale and the buyer’s contingencies have been removed. During the period when this occurs, the carrying value of the asset and the estimated closing and other costs will be adjusted, if necessary. If the Company has a change in its plan for the disposition of an asset, the carrying value will be adjusted to reflect this change in the period that the change is approved. The change in value may include the accrued liquidation costs related to the asset. Other Assets The Company recognizes recoveries from the settlement of unresolved Causes of Action when an agreement has been executed and collectability is reasonably assured. An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. Insurance claims are recognized when the insurance company accepts the claim or if a claim is pending and the recoverable amount can be estimated. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. ition, the Company recognizes other amounts to be received based on contractual terms or when the amounts to be received are certain. Accrued Liquidation Costs The Company accrues for estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs of the single-family homes under development, other project related costs, architectural and engineering, project management, city fees, bond payments (net of refunds), furnishings, marketing and other costs; (b) estimated holding costs, including property taxes, insurance, maintenance, utilities and other; and (c) estimated general and administrative costs including payroll, legal and other professional fees, trustee and board fees, rent and other office related expenses, interest on financing and other general and administrative costs to operate the Company. Cash Equivalents The Company considers short-term investments that have a maturity date of ninety days or less at the time of investment to be a cash equivalent. The Company’s cash equivalents include money market savings deposits and money market funds. Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and restricted cash. At times, balances in any one financial institution may exceed the Federal Deposit Insurance Corporation (FDIC) insurance limits. The Company mitigates this risk by depositing its cash, cash equivalents and restricted cash in high-credit quality financial institutions. In addition, the Company uses strategies to reduce deposit balances at any one financial institution consistent with FDIC insurance limits. Income Taxes The Trust is intended to be treated as a grantor trust for income tax purposes and, accordingly, is not subject to federal or state income tax on any income earned or gain recognized by the Trust. The Trust’s beneficiaries will be treated as the owner of a pro rata portion of each asset, including cash and each liability received by and held by the Trust. Each beneficiary will be required to report on his or her federal and state income tax return his or her pro rata share of taxable income, including gains and losses recognized by the Trust. Accordingly, there is no provision for federal or state income taxes recorded in the accompanying consolidated financial statements. The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in the consolidated financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provision for uncertain income tax positions has been recorded in the consolidated financial statements. |
Real Estate Assets Held for Sal
Real Estate Assets Held for Sale | 9 Months Ended |
Mar. 31, 2022 | |
Real Estate Assets Held for Sale [Abstract] | |
Real Estate Assets Held for Sale | 3) Real Estate Assets Held for Sale The Company’s real estate assets held for sale as of March 31, 2022 March 31, 2022 June 30, 2021 Number of Assets Gross Value Closing and Other Costs Net Value Number of Assets Gross Value Closing and Other Costs Net Value Single-family homes 3 $ 98,451 $ (5,907 ) $ 92,544 7 $ 146,750 $ (8,805 ) $ 137,945 Other real estate assets: Secured loans 2 986 (40 ) 946 4 1,945 (87 ) 1,858 Other properties 2 1,107 (55 ) 1,052 2 1,107 (55 ) 1,052 Subtotal 4 2,093 (95 ) 1,998 6 3,052 (142 ) 2,910 Total 7 $ 100,544 $ (6,002 ) $ 94,542 13 $ 149,802 $ (8,947 ) $ 140,855 As of March 31, 2022, all of the single-family homes are located in the Los Angeles, California area and two of the single-family homes are under construction. The Company is also completing the construction of one single-family home that was sold in December 2021 and located in New York City and one that was sold in May 2021 and located in Los Angeles, California. The loans are secured by properties that are located in the Midwest and Eastern United States. The other properties are located in the state of Hawaii and the state of New York. During the three months ended March 31, 2022, the Company settled one secured loan for net proceeds of approximately $725,000. As of March 31, 2022, the Company had two single-family homes under contract. Although the contingencies relating to these pending sales have been removed, no assurance can be given that the sales will close. During the three months ended March 31, 2021, the Company did not sell any real estate assets. During the nine months ended March 31, 2022, the Company sold four single-family homes and settled two secured loans for net proceeds of approximately $64,405,000. During the nine months ended March 31, 2021, the Company sold five single-family homes, two lots and eleven other properties for net proceeds of approximately $121,208,000. One of the single-family homes sold during the nine months ended March 31, 2021 was under construction and the buyer assumed the remaining obligations to complete construction of approximately $11,253,000. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Mar. 31, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | 4) Restricted Cash The Company’s restricted cash as of March 31, 2022, with comparative information as of June 30, 2021, is as follows ($ in thousands): March 31, 2022 June 30, 2021 Distributions restricted by the Company related to unresolved claims, distributions for recently allowed claims, uncashed distribution checks, distributions withheld due to pending avoidance actions and distributions that the Trust is waiting for further beneficiary information $ 5,031 $ 4,687 Forfeited Assets (Note 7) 2,317 1,836 Interest reserve (Note 9) 1,750 1,750 Total restricted cash $ 9,098 $ 8,273 |
Other Assets
Other Assets | 9 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | 5) Other Assets The Company’s other assets as of March 31, 2022, with comparative information as of June 30, 2021, are as follows ($ in thousands): March 31, 2022 June 30, 2021 Escrow receivables (a) $ 3,560 $ 2,500 Forfeited Assets (Note 7) 1,059 1,549 Settlement installment receivables, net (b) 712 1,014 Other 400 410 Total other assets $ 5,731 $ 5,473 (a) Escrow receivables as of March 31, 2022 relate to two single-family homes that were sold during the nine months ended March 31, 2022. single-family home sold prior to June 30, 2021. Escrow receivables as of June 30, 2021 relate to one single-family home sold prior to June 30, 2021. Amounts are to be released upon completion of construction and/or obtaining a certificate of occupancy (b) The allowance for uncollectible settlement installment receivables was approximately $6 and $9 ($ in thousands) at March 31, 2022 and June 30, 2021, respectively |
Accrued Liquidation Costs
Accrued Liquidation Costs | 9 Months Ended |
Mar. 31, 2022 | |
Accrued Liquidation Costs [Abstract] | |
Accrued Liquidation Costs | 6) Accrued Liquidation Costs The following is a summary of the items included in accrued liquidation costs as of March 31, 2022, with comparative information as of June 30, 2021 ($ in thousands): March 31, 2022 June 30, 2021 Development costs: Construction costs $ 11,564 $ 23,480 Construction warranty 2,870 2,870 Indirect costs 498 712 Bond refunds (699 ) (1,134 ) Total development costs 14,233 25,928 Holding costs: Property tax 836 1,901 Insurance 462 1,291 Maintenance, utilities and other 479 1,000 Total holding costs 1,777 4,192 General and administrative costs: Legal and other professional fees 10,475 17,697 Payroll and payroll-related 8,546 10,432 State, local and other taxes 2,188 2,217 Directors and officers insurance 2,024 2,576 Board fees and expenses 698 1,558 Other 1,164 983 Total general and administrative costs 25,095 35,463 Total accrued liquidation costs $ 41,105 $ 65,583 |
Forfeited Assets - Restricted f
Forfeited Assets - Restricted for Qualifying Victims | 9 Months Ended |
Mar. 31, 2022 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets - Restricted for Qualifying Victims | 7) Forfeited Assets - The Trust entered into a resolution agreement with the DOJ which provided that the Trust would receive the assets forfeited by Robert and Jeri Shapiro (the “Forfeited Assets”). In March 2021, the Trust received certain Forfeited Assets from the DOJ, including cash, wine, jewelry, handbags, clothing, shoes, art, gold and other assets. The wine and the gold were sold during the nine months ended March 31, 2022. The agreement also provided for the Trust to liquidate the Forfeited Assets and to distribute the net sale proceeds to Qualifying Victims. Qualifying Victims include the vast majority of Trust beneficiaries (specifically, all former holders of allowed Class 3 and 5 claims and their permitted assigns), but do not include former holders of Class 4 claims. Distributions to Qualifying Victims are to be allocated pro-rata based on their net allowed claims without considering the (i) 5% enhancement for contributing their causes of action or (ii) 72.5% Class 5 coefficient. The Forfeited Assets included in the Company’s March 31, 2022 and June 30, 2021 consolidated financial statements are as follows ($ in thousands): March 31, 2022 June 30, 2021 Restricted cash (Note 4) $ 2,317 $ 1,836 Other assets (Note 5) 1,059 1,549 Accrued liquidation costs (173 ) (218 ) Net assets in liquidation - restricted for Qualifying Victims $ 3,203 $ 3,167 |
Net Change In Assets and Liabil
Net Change In Assets and Liabilities | 9 Months Ended |
Mar. 31, 2022 | |
Net Change In Assets and Liabilities [Abstract] | |
Net Change In Assets and Liabilities | 8) Net Change In Assets and Liabilities Restricted for Qualifying Victims: The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 111 - 111 Other assets (120 ) - (120 ) Total assets $ (9 ) $ - $ (9 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (9 ) - (9 ) Total liabilities $ (9 ) $ - $ (9 ) Change in carrying value of assets and liabilities, net $ - $ - $ - The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 28 - 28 Other assets - 3,442 3,442 Total assets $ 28 $ 3,442 $ 3,470 Accounts payable and accrued liabilities $ - $ 11 $ 11 Accrued liquidation costs - - - Total liabilities $ - $ 11 $ 11 Change in carrying value of assets and liabilities, net $ 28 $ 3,431 $ 3,459 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 481 - 481 Other assets (526 ) 36 (490 ) Total assets $ (45 ) $ 36 $ (9 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (45 ) - (45 ) Total liabilities $ (45 ) $ - $ (45 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 28 - 28 Other assets - 3,442 3,442 Total assets $ 28 $ 3,442 $ 3,470 Accounts payable and accrued liabilities $ - $ 11 $ 11 Accrued liquidation costs - - - Total liabilities $ - $ 11 $ 11 Change in carrying value of assets and liabilities, net $ 28 $ 3,431 $ 3,459 All Interestholders The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (736 ) $ 9,870 $ 9,134 Cash and cash equivalents 19,910 - 19,910 Restricted cash - - - Other assets (24,991 ) 20 (24,971 ) Total assets $ (5,817 ) $ 9,890 $ 4,073 Accounts payable and accrued liabilities $ - $ 79 $ 79 Accrued liquidation costs (6,500 ) 2,228 (4,272 ) Total liabilities $ (6,500 ) $ 2,307 $ (4,193 ) Change in carrying value of assets and liabilities, net $ 683 $ 7,583 $ 8,266 The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2022 ($ in thousands): Distributions declared $ (39,981 ) Distributions reversed 472 Distributions (declared) reversed, net $ (39,509 ) Distributions payable decreased by approximately $(137,000) during the three months ended March 31, 2022. The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (9 ) $ - $ (9 ) Cash and cash equivalents (11,199 ) - (11,199 ) Restricted cash 1,262 - 1,262 Other assets (287 ) (1,091 ) (1,378 ) Total assets $ (10,233 ) $ (1,091 ) $ (11,324 ) Accounts payable and accrued liabilities $ 42 $ 30 $ 72 Accrued liquidation costs (11,238 ) (2,132 ) (13,370 ) Total liabilities $ (11,196 ) $ (2,102 ) $ (13,298 ) Change in carrying value of assets and liabilities, net $ 963 $ 1,011 $ 1,974 The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2021 ($ in thousands): Distributions declared $ (50,005 ) Distributions reversed 47 Distributions (declared) reversed, net $ (49,958 ) Distributions payable increased by approximately $1,261,000 during the three months ended March 31, 2021 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2022 Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (64,437 ) $ 18,124 $ (46,313 ) Cash and cash equivalents 68,260 - 68,260 Restricted cash - - - Other assets (25,998 ) 26,745 747 Total assets $ (22,175 ) $ 44,869 $ 22,694 Accounts payable and accrued liabilities $ (184 ) $ 1,390 $ 1,206 Accrued liquidation costs (23,712 ) (722 ) (24,434 ) Total liabilities $ (23,896 ) $ 668 $ (23,228 ) Change in carrying value of assets and liabilities, net $ 1,721 $ 44,201 $ 45,922 The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2022 ($ in thousands): Distributions declared $ (79,997 ) Distributions reversed 761 Distributions (declared) reversed, net $ (79,236 ) Distributions payable increased by approximately $344,000 during the nine months ended March 31, 2022 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (121,186 ) $ (13,184 ) $ (134,370 ) Cash and cash equivalents 87,650 - 87,650 Restricted cash 2,528 - 2,528 Other assets (2,164 ) (762 ) (2,926 ) Total assets $ (33,172 ) $ (13,946 ) $ (47,118 ) Accounts payable and accrued liabilities $ (947 ) $ 423 $ (524 ) Accrued liquidation costs (41,236 ) (12,887 ) (54,123 ) Total liabilities $ (42,183 ) $ (12,464 ) $ (54,647 ) Change in carrying value of assets and liabilities, net $ 9,011 $ (1,482 ) $ 7,529 The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2021 ($ in thousands): Distributions declared $ (109,932 ) Distributions reversed 378 Distributions (declared) reversed, net $ (109,554 ) Distributions payable increased by approximately $2,531,000 during the nine months ended March 31, 2021 |
Credit Agreement
Credit Agreement | 9 Months Ended |
Mar. 31, 2022 | |
Credit Agreement [Abstract] | |
Credit Agreement | 9) Credit Agreement On June 19, 2020, two wholly-owned subsidiaries of the Wind-Down Entity entered into a $25,000,000 revolving line of credit (the “LOC”) with a financial institution. The LOC had an original maturity of June 19, 2022. The LOC requires the borrowers to establish an interest reserve of $1,750,000 (Note 4), which is to be used to pay the potential monthly interest payments. Outstanding borrowings bear interest at a fixed rate of 3.50% per annum. Indebtedness under the LOC was secured by a deed of trust on one property, the personal property associated therewith and the interest reserve. The Wind-Down Entity is the guarantor of the LOC. The Company is required to keep a cash balance of $20,000,000 on deposit with the lender in order to avoid a non-compliance fee of 2% of the shortfall in the required deposit and is required to comply with various covenants. The property that was collateral for the LOC was sold in December 2020. The LOC agreement provides that the borrower had 60 days after the sale of the collateral to add borrower(s) and additional property(ies) as collateral. During the 60-day period, the available borrowings under the LOC were reduced to $100,000. On February 11, 2021, the LOC was amended. Two additional wholly owned subsidiaries of the Wind-Down Entity were joined to the LOC as co-borrowers and two properties were added as replacement collateral as allowed for in the original agreement. As a result of this amendment, the available borrowing commitment was adjusted back up to $25,000,000. The maturity date of the LOC was changed to January 31, 2023 with an option to extend for one As of March 31, 2022, the Company was in compliance with the financial covenants of the LOC. No amounts were outstanding under the LOC as of March 31, 2022 or June 30, 2021. |
Liquidation Trust Interests
Liquidation Trust Interests | 9 Months Ended |
Mar. 31, 2022 | |
Liquidation Trust Interests [Abstract] | |
Liquidation Trust Interests | 10) Liquidation Trust Interests The following table summarizes the Liquidation Trust Interests (rounded) for the nine months ended March 31, 2022 and 2021: For the Nine Months Ended March 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,512,855 675,784 11,518,232 675,558 Allowed claims 4,976 - 10,367 1,133 5 - - 182 56 Settlement of claims by cancelling Liquidation Trust Interests (1,392 ) (167 ) (15,121 ) (435 ) Outstanding at end of period 11,516,439 675,617 11,513,660 676,312 Of the 11,516,439 Class A Interests outstanding at March 31, 2022, 11,436,675 were held by Qualifying Victims (Note 7). At the Plan Effective Date, certain claims were disputed. As those disputed claims are resolved, additional Class A and (if applicable) Class B Interests are issued on account of allowed claims or Class A and (if applicable) Class B Interests are cancelled. No Class A or Class B Interests are issued on account of disallowed claims. The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the nine months ended March 31, 2022 and 2021: For the Nine Months Ended March 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 124,609 5,011 193,559 7,118 Allowed claims (4,976 ) - (10,367 ) (1,133 ) 5 - - (32 ) - Disallowed claims (28,840 ) (4,678) (44,372 ) (974 ) Reserved for unresolved claims at end of period 90,793 333 138,788 5,011 Of the 90,793 Class A Interests relating to unresolved claims at March 31, 2022, 3,449 would be held by Qualifying Victims (Note 7). |
Distributions
Distributions | 9 Months Ended |
Mar. 31, 2022 | |
Distributions [Abstract] | |
Distributions | 11) Distributions The Plan provides for a distribution waterfall that specifies the priority and manner of distribution of available cash, excluding distributions of the net sales proceeds from Forfeited Assets. Distributions are to be made (a) to the Class A Interests until they have received distributions of $75.00 per Class A Interest; thereafter (b) to the Class B Interests until they have received distributions of $75.00 per Class B Interest; thereafter (c) to each Liquidation Trust Interest (whether a Class A or Class B Interest) until the aggregate of all distributions made pursuant to this clause equals an amount equivalent to interest, at a per annum fixed rate of 10%, compounded annually, accrued on the aggregate principal amount of all Net Note Claims, Allowed General Unsecured Claims and Net Unit Claims, all as defined in the Plan, treating each distribution pursuant to (a) and (b) above as reductions of such principal amount; and thereafter (d) to the holders of Allowed Subordinated Claims, as defined in the Plan, until such claims are paid in full, including interest, at a per annum fixed rate of 10% or such higher rate as may be agreed to, as provided for in the Plan, compounded annually, accrued on the principal amount of each Allowed Subordinated Claim. During the three months ended March 31, 2022, one distribution was declared. During the nine months ended March 31, 2022, two distributions were declared. A distribution in the amount of approximately $39,981,000 was declared on February 4, 2022 which represented $3.44 per Class A Interest. The distribution included (i) a cash distribution on account of then-allowed claims in the amount of approximately $39,151,000, which was paid on March 3, 2022 and (ii) a deposit of approximately $830,000 into a restricted cash account, which was made on March 15, 2022, for amounts, (a) payable for Class A Interests that may be issued in the future upon the allowance of unresolved claims; (b) in respect of Class A Interests issued on account of recently allowed claims; (c) for holders of Class A Interests who failed to cash distribution checks mailed in respect of prior distributions; (d) for distributions that were withheld due to pending avoidance actions; and (e) for holders of Class A Interests for which the Trust is waiting for further beneficiary information. A iary information. During the three months ended March 31, 2021, one distribution was declared. During the nine months ended March 31, 2021, three distributions were declared. A distribution in the amount of approximately $50,005,000 was declared on January 7, 2021 which represented $4.28 per Class A Interest. The distribution included (i) a cash distribution on account of then-allowed claims in the amount of approximately $48,665,000, which was paid on January 27, 2021 and (ii) a deposit of approximately $1,340,000 into a restricted cash account, which was made on January 28, 2021, for amounts (a) payable for Class A Interests that may be issued in the future upon the allowance of unresolved claims; (b) in respect of Class A Interests issued on account of recently allowed claims; (c) for holders of Class A Interests who failed to cash distribution checks mailed in respect of prior distributions; (d) for distributions that were withheld due to pending avoidance actions; and (e) for holders of Class A Interests for which the Trust is waiting for further beneficiary information. in the amount of approximately $29,934,000 was declared on July 13, 2020 which represented $2.56 per Class A Interest. The distribution included (i) a cash distribution on account of then-allowed claims in the amount of approximately $29,201,000, which was paid on July 16, 2020 and (ii) a deposit of approximately $733,000 into a restricted cash account, which was made on August 25, 2020, for amounts (a) payable for Class A Interests that may be issued in the future upon the allowance of unresolved claims; (b) in respect of Class A Interests issued on account of recently allowed claims; (c) for holders of Class A Interests who failed to cash distribution checks mailed in respect of prior distributions; (d) for distributions that were withheld due to pending avoidance actions; and (e) for holders of Class A Interests for which the Trust is waiting for further beneficiary information. During the three months ended March 31, 2022 and 2021, approximately $495,000 and $229,000, respectively, and during the nine months ended March 31, 2022 and 2021, approximately $608,000 and $351,000, respectively, of distributions were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amount as (a) claims were resolved, (b) claims were recently allowed, (c) addresses for holders of uncashed distribution checks were obtained, (d) pending avoidance actions were resolved and (e) further beneficiary information was received. During the three months ended March 31, 2022 and 2021, approximately $472,000 and $47,000, respectively, and during the nine months ended March 31, 2022 and 2021, approximately $761,000 and $379,000, respectively, were released from the restricted cash account and distributions payable were reduced by the same amount as a result of claims being disallowed or Class A Interests being cancelled. During the three months ended March 31, 2022 and 2021, approximately $0 and $197,000, respectively, and during the nine months ended March 31, 2022 and 2021, approximately $0, and $431,000, respectively, were received from the Company’s transfer agent and others relating to distribution checks that were returned or not cashed. These amounts were deposited into the restricted cash account and distributions payable were increased by the same amount. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12) Related Party Transactions Terry Goebel, a member of the Trust Supervisory Board, is president and a principal owner of G3 Group LA (G3), a construction firm specializing in the development of high-end luxury residences. G3 is owned by Terry Goebel and his son Kelly Goebel. As of March 31, 2022, the Company was under contract with G3 for the development of one single-family home in Los Angeles, California. As of March 31, 2022 and June 30, 2021 the remaining amounts payable under this contract were approximately respectively. respectively, were paid by the Company to G3 related to this contract. The Liquidation Trustee of the Trust is entitled to receive 5% of the total gross amount recovered by the Trust from the pursuit of the Causes of Action. During the three months ended March 31 were accrued as amounts due to the Liquidation Trustee. As of March 31 respectively, were payable to the Liquidation Trustee. These amounts are included in accounts payable and accrued liabilities in the accompanying consolidated statements of net assets in liquidation. March March In November 2019, the Trust entered into an arrangement with Akerman LLP, a law firm based in Miami, Florida of which the Liquidation Trustee is a partner, for the provision, at the option of the Trust on an as-needed basis, of e-discovery and related litigation support services in connection with the Trust’s prosecution of the Causes of Action. Under the arrangement, the Trust is charged for the services at scheduled rates per task which, depending on specific task, include flat rates, rates based on volume of data processed, rates based on the number of data users, the hourly rates of Akerman LLP personnel, or other rates. During the three months ended March 31, 2022 and 2021, approximately $137,000 and $109,000, respectively, and during the nine months ended March payables as of March The executive officers of the Wind-Down Entity are entitled to a bonus based on the Wind-Down Entity achieving certain specified cumulative amounts of distributions to the Trust. Based on the carrying amounts of the net assets in liquidation included in the accompanying consolidated statements of net assets in liquidation, as of March $3,040,000, respectively, ccrued as the estimated amount of the bonus (including associated payroll taxes). These amounts are included in the payroll and payroll-related costs portion of accrued liquidation costs in the accompanying consolidated statement of net assets in liquidation. March March |
Causes of Action
Causes of Action | 9 Months Ended |
Mar. 31, 2022 | |
Causes of Action [Abstract] | |
Causes of Action | 13) Causes of Action During the three and nine months ended March 31, 2022 and 2021, the Company recorded the following amounts from the settlement of Causes of Action ($ in thousands): For the Three Months Ended March 31, For the Nine Months Ended March 31, 2022 2021 2022 2021 Comerica Bank $ - $ - $ 24,815 $ - Other settlement recoveries 468 1,278 1,868 8,443 Total $ 468 $ 1,278 $ 26,683 $ 8,443 On August 6, 2021, the Trust agreed to settle two pending actions against Comerica Bank. As a result, the Company received proceeds of approximately $54,500,000 from the settlement during the three months ended March 31, 2022. The allocation of the proceeds is as follows ($ in thousands): Trust's net portion $ 24,815 Payable to non-contributing claimants 15,600 Payable for approved legal fees and litigation costs 13,960 Payable for incentive awards 100 Payable for administrative costs relating to non-contributing claimants 25 Total $ 54,500 All of the proceeds have been distributed according to the settlement except for approximately $13,000 payable to non-contributing claimants and approximately $25,000 payable for court approved notice and administrative costs as the Company has not received all of the necessary documentation. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14) Commitments and Contingencies As of March 31, 2022, the Company had construction contracts under which an aggregate of approximately $5,200,000 was unpaid. The Company had a lease for its office space that expired on August 31, 2021. The Company had one three-month option to extend the lease. On June 4, 2021, the Company opted not to extend its existing lease and entered into a new office lease at a different location. The new lease is for the period from August 1, 2021 through July 31, 2022. The annual rent is approximately $43,000 plus common area maintenance charges. The Company has two six-month options to extend the lease. The Company paid approximately $55,000 for the lease year ending July 31, 2022 relating to prepaid rent, common area maintenance charges and a security deposit for the new lease during the year ended June 30, 2021. During the three months ended March 31, 2022 and 2021, approximately $0 and $76,000, respectively, and during the nine months ended March 31, 2022 and 2021, approximately $50,000 and $221,000, respectively were paid as rent, including common area maintenance and parking charges. The Company is not presently the defendant in any material litigation nor, to the Company’s knowledge, is any material litigation threatened against the Company. The Company is not aware of any environmental liabilities that it believes would have a material adverse effect on its net assets in liquidation. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15) Subsequent Events The Company evaluates subsequent events up until the date the unaudited consolidated financial statements are issued. Distributions During the period from April 1, 2022 through May 13, 2022, as (a) claims were resolved, (b) claims were recently allowed, (c) addresses for holders of uncashed distribution checks were obtained, (d) pending avoidance actions were resolved and (e) further beneficiary information was received, distributions of approximately $92,000 were paid to holders of Class A Interests from the restricted cash account and distributions payable were reduced by the same amount. During the period from April 1, 2022 through May 13, 2022, as a result of claims being disallowed or Class A Interests being cancelled, approximately $52,000 was released from the restricted cash account and distributions payable were reduced by the same amount. Sales of Real Estate Assets During the period from April 1, 2022 through May 13, 2022, approximately $1,800,000 relating to a pending sale was released from escrow. Construction Contracts During the period from April 1, 2022 through May 13, 2022, the Company increased construction contracts by approximately $106,000. Causes of Action During the period from April 1, 2022 through May 13, 2022, the Trust recorded approximately $23,000 from the settlement of Causes of Action. The Company recorded approximately $1,000 as the amount due to the Liquidation Trustee on account of such settlements. Related Party Transactions During the period from April 1, 2022 through May 13, 2022, the Trust paid approximately $1,241,000 to the Liquidation Trustee. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the consolidated financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such periods. These consolidated financial statements have been presented in accordance with Accounting Standards Codification (ASC) Subtopic 205-30, “Liquidation Basis of Accounting,” as amended by Accounting Standards Update (ASU) No. 2013-07, “Presentation of Financial Statements (Topic 205), Liquidation Basis of Accounting.” The June 30, 2021 consolidated statement of net assets in liquidation included herein was derived from the audited consolidated financial statements but does not include all disclosures or notes required by U.S. GAAP for complete financial statements. |
Consolidation | All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically, and the carrying amounts of assets and liabilities are revised in the period that available information supports a change in the carrying amount. |
Liquidation Basis of Accounting | Liquidation Basis of Accounting Under the liquidation basis of accounting, all assets are recorded at their estimated net realizable value or liquidation value, which represents the estimated amount of net cash that will be received upon the disposition of the assets (on an undiscounted basis). The measurement of real estate assets held for sale is based on the terms of current contracts (if any), estimates and other indications of sales value, net of estimated selling costs. To determine the value of real estate assets held for sale, the Company considered the three traditional approaches to value (cost, income and sales comparison) commonly used by the real estate appraisal community. The applicability and relevancy of each valuation approach as applied may differ by asset. In most cases, the sales comparison approach was accorded the greatest weight. This approach compares a property to other properties with similar characteristics that have recently sold. To validate management’s estimate, the Company also considers opinions from qualified real estate professionals and local real estate brokers and, in some cases, obtained third party appraisals. The estimated selling costs range from 5.0% to 6.0% of the property sales price. Liabilities, including estimated costs associated with implementing and completing the Plan, are measured in accordance with U.S. GAAP that otherwise applies to those liabilities. The Company has also recorded the estimated development costs to be incurred to prepare the assets for sale as well as the estimated holding costs to be incurred until the projected sale date and the estimated general and administrative costs to be incurred until the completion of the liquidation of the Company. When estimating development costs, the Company considered third party construction contracts and estimates of costs to complete based on construction status, progress and projected completion timing. Estimated development costs also include the costs of design and furnishings necessary to prepare and stage the homes for marketing. Holding cost estimates consider property taxes, insurance, utilities, maintenance and other costs to be incurred until the sale of the property is closed. Projected general and administrative cost estimates take into account operating costs through the completion of the liquidation of the Company. These estimated amounts are presented in the accompanying consolidated statements of net assets in liquidation. All changes in the estimated liquidation value of the Company’s real estate held for sale, or other assets and liabilities are reflected as a change to the Company’s net assets in liquidation. The Company does not record any amount from the future settlement of unresolved Causes of Action or recoveries from Fair Fund or Forfeited Assets (including those that may be settled, but subject to court or other regulatory agency approval) in the accompanying consolidated financial statements since they cannot be reasonably estimated. The amount recovered may be material to the Company’s net assets in liquidation. On a quarterly basis, the Company reviews the estimated net realizable values, liquidation costs and the estimated date of the completion of the liquidation of the Company and records any significant changes. The Company will also revalue an asset when it is under contract for sale and the buyer’s contingencies have been removed. During the period when this occurs, the carrying value of the asset and the estimated closing and other costs will be adjusted, if necessary. If the Company has a change in its plan for the disposition of an asset, the carrying value will be adjusted to reflect this change in the period that the change is approved. The change in value may include the accrued liquidation costs related to the asset. |
Other Assets | Other Assets The Company recognizes recoveries from the settlement of unresolved Causes of Action when an agreement has been executed and collectability is reasonably assured. An allowance for uncollectible settlement installment receivables is recorded when there is doubt about the collectability of the receivable. Insurance claims are recognized when the insurance company accepts the claim or if a claim is pending and the recoverable amount can be estimated. The Company records escrow receivables at the amount that is expected to be received when the escrow receivable is released. ition, the Company recognizes other amounts to be received based on contractual terms or when the amounts to be received are certain. |
Accrued Liquidation Costs | Accrued Liquidation Costs The Company accrues for estimated liquidation costs to the extent they are reasonably determinable. These costs consist of (a) estimated development costs of the single-family homes under development, other project related costs, architectural and engineering, project management, city fees, bond payments (net of refunds), furnishings, marketing and other costs; (b) estimated holding costs, including property taxes, insurance, maintenance, utilities and other; and (c) estimated general and administrative costs including payroll, legal and other professional fees, trustee and board fees, rent and other office related expenses, interest on financing and other general and administrative costs to operate the Company. |
Cash Equivalents | Cash Equivalents The Company considers short-term investments that have a maturity date of ninety days or less at the time of investment to be a cash equivalent. The Company’s cash equivalents include money market savings deposits and money market funds. |
Restricted Cash | Restricted Cash Restricted cash includes cash that can only be used for certain specified purposes. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and restricted cash. At times, balances in any one financial institution may exceed the Federal Deposit Insurance Corporation (FDIC) insurance limits. The Company mitigates this risk by depositing its cash, cash equivalents and restricted cash in high-credit quality financial institutions. In addition, the Company uses strategies to reduce deposit balances at any one financial institution consistent with FDIC insurance limits. |
Income Taxes | Income Taxes The Trust is intended to be treated as a grantor trust for income tax purposes and, accordingly, is not subject to federal or state income tax on any income earned or gain recognized by the Trust. The Trust’s beneficiaries will be treated as the owner of a pro rata portion of each asset, including cash and each liability received by and held by the Trust. Each beneficiary will be required to report on his or her federal and state income tax return his or her pro rata share of taxable income, including gains and losses recognized by the Trust. Accordingly, there is no provision for federal or state income taxes recorded in the accompanying consolidated financial statements. The Company regularly analyzes its various federal and state filing positions and only recognizes the income tax effect in the consolidated financial statements when certain criteria regarding uncertain income tax positions have been met. The Company believes that its income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provision for uncertain income tax positions has been recorded in the consolidated financial statements. |
Real Estate Assets Held for S_2
Real Estate Assets Held for Sale (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Real Estate Assets Held for Sale [Abstract] | |
Real Estate Assets Held for Sale | The Company’s real estate assets held for sale as of March 31, 2022 March 31, 2022 June 30, 2021 Number of Assets Gross Value Closing and Other Costs Net Value Number of Assets Gross Value Closing and Other Costs Net Value Single-family homes 3 $ 98,451 $ (5,907 ) $ 92,544 7 $ 146,750 $ (8,805 ) $ 137,945 Other real estate assets: Secured loans 2 986 (40 ) 946 4 1,945 (87 ) 1,858 Other properties 2 1,107 (55 ) 1,052 2 1,107 (55 ) 1,052 Subtotal 4 2,093 (95 ) 1,998 6 3,052 (142 ) 2,910 Total 7 $ 100,544 $ (6,002 ) $ 94,542 13 $ 149,802 $ (8,947 ) $ 140,855 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | The Company’s restricted cash as of March 31, 2022, with comparative information as of June 30, 2021, is as follows ($ in thousands): March 31, 2022 June 30, 2021 Distributions restricted by the Company related to unresolved claims, distributions for recently allowed claims, uncashed distribution checks, distributions withheld due to pending avoidance actions and distributions that the Trust is waiting for further beneficiary information $ 5,031 $ 4,687 Forfeited Assets (Note 7) 2,317 1,836 Interest reserve (Note 9) 1,750 1,750 Total restricted cash $ 9,098 $ 8,273 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | The Company’s other assets as of March 31, 2022, with comparative information as of June 30, 2021, are as follows ($ in thousands): March 31, 2022 June 30, 2021 Escrow receivables (a) $ 3,560 $ 2,500 Forfeited Assets (Note 7) 1,059 1,549 Settlement installment receivables, net (b) 712 1,014 Other 400 410 Total other assets $ 5,731 $ 5,473 (a) Escrow receivables as of March 31, 2022 relate to two single-family homes that were sold during the nine months ended March 31, 2022. single-family home sold prior to June 30, 2021. Escrow receivables as of June 30, 2021 relate to one single-family home sold prior to June 30, 2021. Amounts are to be released upon completion of construction and/or obtaining a certificate of occupancy (b) The allowance for uncollectible settlement installment receivables was approximately $6 and $9 ($ in thousands) at March 31, 2022 and June 30, 2021, respectively |
Accrued Liquidation Costs (Tabl
Accrued Liquidation Costs (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accrued Liquidation Costs [Abstract] | |
Summary of Accrued Liquidation Costs | The following is a summary of the items included in accrued liquidation costs as of March 31, 2022, with comparative information as of June 30, 2021 ($ in thousands): March 31, 2022 June 30, 2021 Development costs: Construction costs $ 11,564 $ 23,480 Construction warranty 2,870 2,870 Indirect costs 498 712 Bond refunds (699 ) (1,134 ) Total development costs 14,233 25,928 Holding costs: Property tax 836 1,901 Insurance 462 1,291 Maintenance, utilities and other 479 1,000 Total holding costs 1,777 4,192 General and administrative costs: Legal and other professional fees 10,475 17,697 Payroll and payroll-related 8,546 10,432 State, local and other taxes 2,188 2,217 Directors and officers insurance 2,024 2,576 Board fees and expenses 698 1,558 Other 1,164 983 Total general and administrative costs 25,095 35,463 Total accrued liquidation costs $ 41,105 $ 65,583 |
Forfeited Assets - Restricted_2
Forfeited Assets - Restricted for Qualifying Victims (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | |
Forfeited Assets Included in Consolidated Financial Statements | The Forfeited Assets included in the Company’s March 31, 2022 and June 30, 2021 consolidated financial statements are as follows ($ in thousands): March 31, 2022 June 30, 2021 Restricted cash (Note 4) $ 2,317 $ 1,836 Other assets (Note 5) 1,059 1,549 Accrued liquidation costs (173 ) (218 ) Net assets in liquidation - restricted for Qualifying Victims $ 3,203 $ 3,167 |
Net Change In Assets and Liab_2
Net Change In Assets and Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Net Change In Assets and Liabilities [Abstract] | |
Summary of Change in Carrying Value of Assets and Liabilities, Net | The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 111 - 111 Other assets (120 ) - (120 ) Total assets $ (9 ) $ - $ (9 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (9 ) - (9 ) Total liabilities $ (9 ) $ - $ (9 ) Change in carrying value of assets and liabilities, net $ - $ - $ - The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 28 - 28 Other assets - 3,442 3,442 Total assets $ 28 $ 3,442 $ 3,470 Accounts payable and accrued liabilities $ - $ 11 $ 11 Accrued liquidation costs - - - Total liabilities $ - $ 11 $ 11 Change in carrying value of assets and liabilities, net $ 28 $ 3,431 $ 3,459 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 481 - 481 Other assets (526 ) 36 (490 ) Total assets $ (45 ) $ 36 $ (9 ) Accounts payable and accrued liabilities $ - $ - $ - Accrued liquidation costs (45 ) - (45 ) Total liabilities $ (45 ) $ - $ (45 ) Change in carrying value of assets and liabilities, net $ - $ 36 $ 36 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ - $ - $ - Cash and cash equivalents - - - Restricted cash 28 - 28 Other assets - 3,442 3,442 Total assets $ 28 $ 3,442 $ 3,470 Accounts payable and accrued liabilities $ - $ 11 $ 11 Accrued liquidation costs - - - Total liabilities $ - $ 11 $ 11 Change in carrying value of assets and liabilities, net $ 28 $ 3,431 $ 3,459 The following provides details of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2022 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (736 ) $ 9,870 $ 9,134 Cash and cash equivalents 19,910 - 19,910 Restricted cash - - - Other assets (24,991 ) 20 (24,971 ) Total assets $ (5,817 ) $ 9,890 $ 4,073 Accounts payable and accrued liabilities $ - $ 79 $ 79 Accrued liquidation costs (6,500 ) 2,228 (4,272 ) Total liabilities $ (6,500 ) $ 2,307 $ (4,193 ) Change in carrying value of assets and liabilities, net $ 683 $ 7,583 $ 8,266 The following is a summary of the change in the carrying value of assets and liabilities, net during the three months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (9 ) $ - $ (9 ) Cash and cash equivalents (11,199 ) - (11,199 ) Restricted cash 1,262 - 1,262 Other assets (287 ) (1,091 ) (1,378 ) Total assets $ (10,233 ) $ (1,091 ) $ (11,324 ) Accounts payable and accrued liabilities $ 42 $ 30 $ 72 Accrued liquidation costs (11,238 ) (2,132 ) (13,370 ) Total liabilities $ (11,196 ) $ (2,102 ) $ (13,298 ) Change in carrying value of assets and liabilities, net $ 963 $ 1,011 $ 1,974 The following provides details of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2022 Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (64,437 ) $ 18,124 $ (46,313 ) Cash and cash equivalents 68,260 - 68,260 Restricted cash - - - Other assets (25,998 ) 26,745 747 Total assets $ (22,175 ) $ 44,869 $ 22,694 Accounts payable and accrued liabilities $ (184 ) $ 1,390 $ 1,206 Accrued liquidation costs (23,712 ) (722 ) (24,434 ) Total liabilities $ (23,896 ) $ 668 $ (23,228 ) Change in carrying value of assets and liabilities, net $ 1,721 $ 44,201 $ 45,922 The following is a summary of the change in the carrying value of assets and liabilities, net during the nine months ended March 31, 2021 ($ in thousands): Cash Remeasure- Activities ment Total Real estate assets held for sale, net $ (121,186 ) $ (13,184 ) $ (134,370 ) Cash and cash equivalents 87,650 - 87,650 Restricted cash 2,528 - 2,528 Other assets (2,164 ) (762 ) (2,926 ) Total assets $ (33,172 ) $ (13,946 ) $ (47,118 ) Accounts payable and accrued liabilities $ (947 ) $ 423 $ (524 ) Accrued liquidation costs (41,236 ) (12,887 ) (54,123 ) Total liabilities $ (42,183 ) $ (12,464 ) $ (54,647 ) Change in carrying value of assets and liabilities, net $ 9,011 $ (1,482 ) $ 7,529 |
Distributions Declared, Net | The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2022 ($ in thousands): Distributions declared $ (39,981 ) Distributions reversed 472 Distributions (declared) reversed, net $ (39,509 ) The following provides details of the distributions (declared) reversed, net during the three months ended March 31, 2021 ($ in thousands): Distributions declared $ (50,005 ) Distributions reversed 47 Distributions (declared) reversed, net $ (49,958 ) The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2022 ($ in thousands): Distributions declared $ (79,997 ) Distributions reversed 761 Distributions (declared) reversed, net $ (79,236 ) The following provides details of the distributions (declared) reversed, net during the nine months ended March 31, 2021 ($ in thousands): Distributions declared $ (109,932 ) Distributions reversed 378 Distributions (declared) reversed, net $ (109,554 ) |
Liquidation Trust Interests (Ta
Liquidation Trust Interests (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Liquidation Trust Interests [Abstract] | |
Liquidation Trust Interests | The following table summarizes the Liquidation Trust Interests (rounded) for the nine months ended March 31, 2022 and 2021: For the Nine Months Ended March 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Outstanding at beginning of period 11,512,855 675,784 11,518,232 675,558 Allowed claims 4,976 - 10,367 1,133 5 - - 182 56 Settlement of claims by cancelling Liquidation Trust Interests (1,392 ) (167 ) (15,121 ) (435 ) Outstanding at end of period 11,516,439 675,617 11,513,660 676,312 |
Unresolved Claims Relating to Liquidation Trust Interests | The following table summarizes the unresolved claims against the Debtors as they relate to Liquidation Trust Interests (rounded) for the nine months ended March 31, 2022 and 2021: For the Nine Months Ended March 31, 2022 2021 Liquidation Trust Interests Class A Class B Class A Class B Reserved for unresolved claims at beginning of period 124,609 5,011 193,559 7,118 Allowed claims (4,976 ) - (10,367 ) (1,133 ) 5 - - (32 ) - Disallowed claims (28,840 ) (4,678) (44,372 ) (974 ) Reserved for unresolved claims at end of period 90,793 333 138,788 5,011 |
Causes of Action (Tables)
Causes of Action (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Causes of Action [Abstract] | |
Settlement of Causes of Action | During the three and nine months ended March 31, 2022 and 2021, the Company recorded the following amounts from the settlement of Causes of Action ($ in thousands): For the Three Months Ended March 31, For the Nine Months Ended March 31, 2022 2021 2022 2021 Comerica Bank $ - $ - $ 24,815 $ - Other settlement recoveries 468 1,278 1,868 8,443 Total $ 468 $ 1,278 $ 26,683 $ 8,443 |
Allocation of Proceeds | The allocation of the proceeds is as follows ($ in thousands): Trust's net portion $ 24,815 Payable to non-contributing claimants 15,600 Payable for approved legal fees and litigation costs 13,960 Payable for incentive awards 100 Payable for administrative costs relating to non-contributing claimants 25 Total $ 54,500 |
Formation and Description of _2
Formation and Description of Business (Details) | Dec. 31, 2020ConstructionSite | Sep. 30, 2020ConstructionSite | Mar. 31, 2022AssetSegmentClass | Jun. 30, 2021Asset | Feb. 15, 2019USD ($)Subsidiary |
Description of Business [Abstract] | |||||
Cash received for funding initial expenses of operation | $ | $ 5,000,000 | ||||
Number of wind-down subsidiaries | Subsidiary | 43 | ||||
Number of classes of liquidation trust interests | Class | 2 | ||||
Real estate assets held for sale, number of assets | 7 | 13 | |||
Number of reportable segments | Segment | 1 | ||||
COVID-19 [Member] | |||||
Description of Business [Abstract] | |||||
Number of construction sites closed | ConstructionSite | 1 | 3 | |||
Single-Family Homes [Member] | |||||
Description of Business [Abstract] | |||||
Real estate assets held for sale, number of assets | 3 | ||||
Number of additional real estate assets being constructed and sold | 2 | ||||
Single-Family Homes [Member] | Los Angeles, California [Member] | |||||
Description of Business [Abstract] | |||||
Number of real estate assets being owned | 3 | ||||
Other Real Estate Assets [Member] | |||||
Description of Business [Abstract] | |||||
Number of real estate assets being liquidated | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Estimated Selling Costs [Member] | Mar. 31, 2022 |
Minimum [Member] | |
Liquidation Basis of Accounting [Abstract] | |
Real estate assets held for sale, measurement input | 0.050 |
Maximum [Member] | |
Liquidation Basis of Accounting [Abstract] | |
Real estate assets held for sale, measurement input | 0.060 |
Real Estate Assets Held for S_3
Real Estate Assets Held for Sale (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2021Asset | May 31, 2021Asset | Mar. 31, 2022USD ($)AssetLoan | Mar. 31, 2021Asset | Mar. 31, 2022USD ($)AssetLoanHome | Mar. 31, 2021USD ($)Asset | Jun. 30, 2021USD ($)Asset | |
Real Estate Investment Property, Net [Abstract] | |||||||
Single-family homes, number of assets | Asset | 3 | 3 | 7 | ||||
Single-family homes, gross value | $ 98,451,000 | $ 98,451,000 | $ 146,750,000 | ||||
Single-family homes, closing and other costs | (5,907,000) | (5,907,000) | (8,805,000) | ||||
Single-family homes, net value | $ 92,544,000 | $ 92,544,000 | $ 137,945,000 | ||||
Other real estate assets, number of assets | Asset | 4 | 4 | 6 | ||||
Other real estate assets, gross value | $ 2,093,000 | $ 2,093,000 | $ 3,052,000 | ||||
Other real estate assets, closing and other costs | (95,000) | (95,000) | (142,000) | ||||
Other real estate assets, net value | $ 1,998,000 | $ 1,998,000 | $ 2,910,000 | ||||
Real estate assets held for sale, number of assets | Asset | 7 | 7 | 13 | ||||
Real estate assets held for sale, gross value | $ 100,544,000 | $ 100,544,000 | $ 149,802,000 | ||||
Real estate assets held for sale, closing and other costs | (6,002,000) | (6,002,000) | (8,947,000) | ||||
Real estate assets held for sale, net | 94,542,000 | 94,542,000 | $ 140,855,000 | ||||
Net proceeds from sale of real estate | $ 725,000 | $ 64,405,000 | $ 121,208,000 | ||||
Number of assets sold | Asset | 0 | ||||||
New York [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Number of single-family homes sold and completing construction | Asset | 1 | ||||||
Los Angeles, California [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Number of single-family homes sold and completing construction | Asset | 1 | ||||||
Single-Family Homes [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Real estate assets held for sale, number of assets | Asset | 3 | 3 | |||||
Number of single-family homes under construction | Home | 2 | ||||||
Number of single-family homes under contract | Asset | 2 | ||||||
Number of assets sold | Asset | 4 | 5 | |||||
Number of single family homes sold on obligation to complete | Asset | 1 | ||||||
Single-Family Homes [Member] | Other Locations [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Remaining obligation to complete construction | $ 11,253,000 | ||||||
Lots [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Number of assets sold | Asset | 2 | ||||||
Secured Loans [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Other real estate assets, number of assets | Asset | 2 | 2 | 4 | ||||
Other real estate assets, gross value | $ 986,000 | $ 986,000 | $ 1,945,000 | ||||
Other real estate assets, closing and other costs | (40,000) | (40,000) | (87,000) | ||||
Other real estate assets, net value | $ 946,000 | $ 946,000 | $ 1,858,000 | ||||
Number of secured loans settled | Loan | 1 | 2 | |||||
Other Properties [Member] | |||||||
Real Estate Investment Property, Net [Abstract] | |||||||
Other real estate assets, number of assets | Asset | 2 | 2 | 2 | ||||
Other real estate assets, gross value | $ 1,107,000 | $ 1,107,000 | $ 1,107,000 | ||||
Other real estate assets, closing and other costs | (55,000) | (55,000) | (55,000) | ||||
Other real estate assets, net value | $ 1,052,000 | $ 1,052,000 | $ 1,052,000 | ||||
Number of assets sold | Asset | 11 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Restricted Cash [Abstract] | ||
Distributions restricted by the Company related to unresolved claims, distributions for recently allowed claims, uncashed distribution checks, distributions withheld due to pending avoidance actions and distributions that the Trust is waiting for further beneficiary information | $ 5,031 | $ 4,687 |
Forfeited Assets (Note 7) | 2,317 | 1,836 |
Interest reserve (Note 9) | 1,750 | 1,750 |
Total restricted cash | $ 9,098 | $ 8,273 |
Other Assets (Details)
Other Assets (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)Property | Jun. 30, 2021USD ($)Property | ||
Other Assets [Abstract] | |||
Escrow receivables | [1] | $ 3,560 | $ 2,500 |
Forfeited Assets (Note 7) | 1,059 | 1,549 | |
Settlement installment receivables, net | [2] | 712 | 1,014 |
Other | 400 | 410 | |
Total other assets | 5,731 | 5,473 | |
Allowance for uncollectible settlement installment receivables | $ 6 | $ 9 | |
Single-Family Homes [Member] | |||
Other Assets [Abstract] | |||
Number of properties with escrow holdbacks | Property | 2 | 1 | |
[1] | Escrow receivables as of March 31, 2022 relate to two single-family homes that were sold during the nine months ended March 31, 2022. single-family home sold prior to June 30, 2021. Escrow receivables as of June 30, 2021 relate to one single-family home sold prior to June 30, 2021. Amounts are to be released upon completion of construction and/or obtaining a certificate of occupancy | ||
[2] | The allowance for uncollectible settlement installment receivables was approximately $6 and $9 ($ in thousands) at March 31, 2022 and June 30, 2021, respectively |
Accrued Liquidation Costs (Deta
Accrued Liquidation Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Development costs [Abstract] | ||
Construction costs | $ 11,564 | $ 23,480 |
Construction warranty | 2,870 | 2,870 |
Indirect costs | 498 | 712 |
Bond refunds | (699) | (1,134) |
Total development costs | 14,233 | 25,928 |
Holding costs [Abstract] | ||
Property tax | 836 | 1,901 |
Insurance | 462 | 1,291 |
Maintenance, utilities and other | 479 | 1,000 |
Total holding costs | 1,777 | 4,192 |
General and administrative costs [Abstract] | ||
Legal and other professional fees | 10,475 | 17,697 |
Payroll and payroll-related | 8,546 | 10,432 |
State, local and other taxes | 2,188 | 2,217 |
Directors and officers insurance | 2,024 | 2,576 |
Board fees and expenses | 698 | 1,558 |
Other | 1,164 | 983 |
Total general and administrative costs | 25,095 | 35,463 |
Total accrued liquidation costs | $ 41,105 | $ 65,583 |
Forfeited Assets - Restricted_3
Forfeited Assets - Restricted for Qualifying Victims (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jun. 30, 2021 |
Forfeited Assets - Restricted for Qualifying Victims [Abstract] | ||
Enhancement percentage for contributing causes of action | 5.00% | |
Class 5 coefficient percentage | 72.50% | |
Forfeited Assets [Abstract] | ||
Restricted cash (Note 4) | $ 2,317 | $ 1,836 |
Other assets (Note 5) | 1,059 | 1,549 |
Accrued liquidation cost | (173) | (218) |
Net assets in liquidation - restricted for Qualifying Victims | $ 3,203 | $ 3,167 |
Net Change In Assets and Liab_3
Net Change In Assets and Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Change in carrying value of assets and liabilities, net | $ 0 | $ 3,459,000 | $ 36,000 | $ 3,459,000 |
Change in carrying value of assets and liabilities, net | 8,266,000 | 1,974,000 | 45,922,000 | 7,529,000 |
Distributions Declared, Net [Abstract] | ||||
Distributions (declared) reversed, net | (39,509,000) | (49,958,000) | (79,236,000) | (109,554,000) |
Increase (decrease) in distributions payable | (137,000) | 1,261,000 | 344,000 | 2,531,000 |
Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 111,000 | 28,000 | 481,000 | 28,000 |
Other assets | (120,000) | 3,442,000 | (490,000) | 3,442,000 |
Total assets | (9,000) | 3,470,000 | (9,000) | 3,470,000 |
Accounts payable and accrued liabilities | 0 | 11,000 | 0 | 11,000 |
Accrued liquidation costs | (9,000) | 0 | (45,000) | 0 |
Total liabilities | (9,000) | 11,000 | (45,000) | 11,000 |
Change in carrying value of assets and liabilities, net | 0 | 3,459,000 | 36,000 | 3,459,000 |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Distributions Declared, Net [Abstract] | ||||
Distributions (declared) reversed, net | 0 | 0 | 0 | 0 |
All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | 9,134,000 | (9,000) | (46,313,000) | (134,370,000) |
Cash and cash equivalents | 19,910,000 | (11,199,000) | 68,260,000 | 87,650,000 |
Restricted cash | 0 | 1,262,000 | 0 | 2,528,000 |
Other assets | (24,971,000) | (1,378,000) | 747,000 | (2,926,000) |
Total assets | 4,073,000 | (11,324,000) | 22,694,000 | (47,118,000) |
Accounts payable and accrued liabilities | 79,000 | 72,000 | 1,206,000 | (524,000) |
Accrued liquidation costs | (4,272,000) | (13,370,000) | (24,434,000) | (54,123,000) |
Total liabilities | (4,193,000) | (13,298,000) | (23,228,000) | (54,647,000) |
Change in carrying value of assets and liabilities, net | 0 | 0 | 0 | 0 |
Change in carrying value of assets and liabilities, net | 8,266,000 | 1,974,000 | 45,922,000 | 7,529,000 |
Distributions Declared, Net [Abstract] | ||||
Distributions declared | (39,981,000) | (50,005,000) | (79,997,000) | (109,932,000) |
Distributions reversed | 472,000 | 47,000 | 761,000 | 378,000 |
Distributions (declared) reversed, net | (39,509,000) | (49,958,000) | (79,236,000) | (109,554,000) |
Cash Activities [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 111,000 | 28,000 | 481,000 | 28,000 |
Other assets | (120,000) | 0 | (526,000) | 0 |
Total assets | (9,000) | 28,000 | (45,000) | 28,000 |
Accounts payable and accrued liabilities | 0 | 0 | 0 | 0 |
Accrued liquidation costs | (9,000) | 0 | (45,000) | 0 |
Total liabilities | (9,000) | 0 | (45,000) | 0 |
Change in carrying value of assets and liabilities, net | 0 | 28,000 | 0 | 28,000 |
Cash Activities [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | (736,000) | (9,000) | (64,437,000) | (121,186,000) |
Cash and cash equivalents | 19,910,000 | (11,199,000) | 68,260,000 | 87,650,000 |
Restricted cash | 0 | 1,262,000 | 0 | 2,528,000 |
Other assets | (24,991,000) | (287,000) | (25,998,000) | (2,164,000) |
Total assets | (5,817,000) | (10,233,000) | (22,175,000) | (33,172,000) |
Accounts payable and accrued liabilities | 0 | 42,000 | (184,000) | (947,000) |
Accrued liquidation costs | (6,500,000) | (11,238,000) | (23,712,000) | (41,236,000) |
Total liabilities | (6,500,000) | (11,196,000) | (23,896,000) | (42,183,000) |
Change in carrying value of assets and liabilities, net | 683,000 | 963,000 | 1,721,000 | 9,011,000 |
Remeasurement [Member] | Restricted for Qualifying Victims [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | 0 | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 | 0 |
Other assets | 0 | 3,442,000 | 36,000 | 3,442,000 |
Total assets | 0 | 3,442,000 | 36,000 | 3,442,000 |
Accounts payable and accrued liabilities | 0 | 11,000 | 0 | 11,000 |
Accrued liquidation costs | 0 | 0 | 0 | 0 |
Total liabilities | 0 | 11,000 | 0 | 11,000 |
Change in carrying value of assets and liabilities, net | 0 | 3,431,000 | 36,000 | 3,431,000 |
Remeasurement [Member] | All Interestholders [Member] | ||||
Changes in Carrying Value of Assets and Liabilities, Net [Abstract] | ||||
Real estate assets held for sale, net | 9,870,000 | 0 | 18,124,000 | (13,184,000) |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | 0 | 0 |
Other assets | 20,000 | (1,091,000) | 26,745,000 | (762,000) |
Total assets | 9,890,000 | (1,091,000) | 44,869,000 | (13,946,000) |
Accounts payable and accrued liabilities | 79,000 | 30,000 | 1,390,000 | 423,000 |
Accrued liquidation costs | 2,228,000 | (2,132,000) | (722,000) | (12,887,000) |
Total liabilities | 2,307,000 | (2,102,000) | 668,000 | (12,464,000) |
Change in carrying value of assets and liabilities, net | $ 7,583,000 | $ 1,011,000 | $ 44,201,000 | $ (1,482,000) |
Credit Agreement (Details)
Credit Agreement (Details) | Feb. 11, 2021USD ($)PropertySubsidiary | Jun. 19, 2020USD ($)Subsidiary | Mar. 31, 2022USD ($) | Jun. 30, 2021USD ($) | Feb. 10, 2021USD ($) |
Line of Credit [Abstract] | |||||
Interest reserve | $ 1,750,000 | $ 1,750,000 | |||
New Revolving Credit Facility [Member] | |||||
Line of Credit [Abstract] | |||||
Number of wholly-owned subsidiaries | Subsidiary | 2 | ||||
Line of credit outstanding | $ 25,000,000 | ||||
Line of credit, maturity date | Jun. 19, 2022 | ||||
Interest reserve | $ 1,750,000 | ||||
Interest rate percentage | 3.50% | ||||
Cash deposit balance | $ 20,000,000 | ||||
Percentage of non-compliance fee | 2.00% | ||||
Period allowed for adding additional borrowers and properties as collateral | 60 days | ||||
Line of credit availability | $ 100,000 | ||||
Amended Revolving Credit Facility [Member] | |||||
Line of Credit [Abstract] | |||||
Line of credit, maturity date | Jan. 31, 2023 | ||||
Line of credit, optional extension period | 1 year | ||||
Line of credit availability | $ 25,000,000 | ||||
Number of wholly-owned subsidiaries added as co-borrowers | Subsidiary | 2 | ||||
Number of properties added as replacement collateral | Property | 2 | ||||
Revolving Line of Credit [Member] | |||||
Line of Credit [Abstract] | |||||
Line of credit outstanding | $ 0 | $ 0 |
Liquidation Trust Interests (De
Liquidation Trust Interests (Details) - shares | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Liquidation Trust Interests [Abstract] | ||
Held by qualifying victims (in shares) | 11,436,675 | |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Unresolved claims held by qualifying victims (in shares) | 3,449 | |
Class A [Member] | ||
Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 11,512,855 | 11,518,232 |
Allowed claims (in shares) | 4,976 | 10,367 |
5% enhancement for certain allowed claims (in shares) | 0 | 182 |
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | (1,392) | (15,121) |
Outstanding at end of period (in shares) | 11,516,439 | 11,513,660 |
Percentage of enhancement for certain allowed claims | 5.00% | 5.00% |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 124,609 | 193,559 |
Allowed claims (in shares) | (4,976) | (10,367) |
5% enhancement for certain allowed claims (in shares) | 0 | (32) |
Disallowed claims (in shares) | (28,840) | (44,372) |
Outstanding at end of period (in shares) | 90,793 | 138,788 |
Percentage of enhancement for certain allowed claims | 5.00% | 5.00% |
Class B [Member] | ||
Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 675,784 | 675,558 |
Allowed claims (in shares) | 0 | 1,133 |
5% enhancement for certain allowed claims (in shares) | 0 | 56 |
Settlement of claims by cancelling Liquidation Trust Interests (in shares) | (167) | (435) |
Outstanding at end of period (in shares) | 675,617 | 676,312 |
Percentage of enhancement for certain allowed claims | 5.00% | 5.00% |
Unresolved Claims Relating to Liquidation Trust Interests [Abstract] | ||
Outstanding at beginning of period (in shares) | 5,011 | 7,118 |
Allowed claims (in shares) | 0 | (1,133) |
5% enhancement for certain allowed claims (in shares) | 0 | 0 |
Disallowed claims (in shares) | (4,678) | (974) |
Outstanding at end of period (in shares) | 333 | 5,011 |
Percentage of enhancement for certain allowed claims | 5.00% | 5.00% |
Distributions (Details)
Distributions (Details) | Mar. 03, 2022USD ($) | Feb. 04, 2022USD ($)$ / shares | Oct. 29, 2021USD ($) | Oct. 08, 2021USD ($)$ / shares | Jan. 27, 2021USD ($) | Jan. 07, 2021USD ($)$ / shares | Nov. 06, 2020USD ($) | Oct. 19, 2020USD ($)$ / shares | Jul. 13, 2020USD ($)$ / shares | Mar. 31, 2022USD ($)Distribution$ / shares | Mar. 31, 2021USD ($)Distribution | Mar. 31, 2022USD ($)Distribution$ / shares | Mar. 31, 2021USD ($)Distribution | Mar. 15, 2022USD ($) | Oct. 28, 2021USD ($) | Jan. 28, 2021USD ($) | Nov. 03, 2020USD ($) | Aug. 25, 2020USD ($) |
Distributions [Abstract] | ||||||||||||||||||
Number of distributions declared | Distribution | 1 | 1 | 2 | 3 | ||||||||||||||
Disallowed or cancelled claims, cash released from restricted cash account | $ 472,000 | $ 47,000 | $ 761,000 | $ 379,000 | ||||||||||||||
Amount received from distribution checks returned or not cashed | $ 0 | 197,000 | $ 0 | 431,000 | ||||||||||||||
All Net Note Claims [Member] | ||||||||||||||||||
Distributions [Abstract] | ||||||||||||||||||
Interest, fixed rate | 10.00% | 10.00% | ||||||||||||||||
Class A [Member] | ||||||||||||||||||
Distributions [Abstract] | ||||||||||||||||||
Preferential distributions payable per interest (in dollars per share) | $ / shares | $ 75 | $ 75 | ||||||||||||||||
Distributions declared | $ 39,981,000 | $ 40,017,000 | $ 50,005,000 | $ 29,957,000 | $ 29,934,000 | |||||||||||||
Distributions declared per interest (in dollars per share) | $ / shares | $ 3.44 | $ 3.44 | $ 4.28 | $ 2.56 | $ 2.56 | |||||||||||||
Initial distributions paid | $ 39,151,000 | $ 39,134,000 | $ 48,665,000 | $ 29,204,000 | 29,201,000 | |||||||||||||
Deposit made into restricted cash account for distributions | $ 830,000 | $ 883,000 | $ 1,340,000 | $ 753,000 | $ 733,000 | |||||||||||||
Subsequent distributions paid | $ 495,000 | $ 229,000 | $ 608,000 | $ 351,000 | ||||||||||||||
Class B [Member] | ||||||||||||||||||
Distributions [Abstract] | ||||||||||||||||||
Preferential distributions payable per interest (in dollars per share) | $ / shares | $ 75 | $ 75 | ||||||||||||||||
Subordinated preferential distributions payable per interest (in dollars per share) | $ / shares | $ 75 | $ 75 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022USD ($)Asset | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)Asset | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) | |
Executive Officer [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Accrued amount due to officers | $ 2,348,000 | $ 2,348,000 | $ 3,040,000 | ||
Payments for bonuses | 692,000 | $ 1,025,000 | $ 692,000 | $ 1,025,000 | |
Liquidation Trustee [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Percentage entitled to receive from total gross amount recovered | 5.00% | ||||
Accrued amount due to related party | 23,000 | 72,000 | $ 1,334,000 | 462,000 | |
Amount payable to related party | 1,310,000 | 1,310,000 | 160,000 | ||
Amount paid under contract | $ 0 | 0 | $ 184,000 | 491,000 | |
G3 Group LA [Member] | Single-Family Homes [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Number of real estate assets under contract for development | Asset | 1 | 1 | |||
Amount payable to related party | $ 3,045,000 | $ 3,045,000 | 4,391,000 | ||
Amount paid under contract | 267,000 | 1,496,000 | 3,443,000 | 5,887,000 | |
Akerman LLP [Member] | |||||
Related Parties Transactions [Abstract] | |||||
Amount payable to related party | 0 | 0 | $ 0 | ||
Payments for legal services | $ 137,000 | $ 109,000 | $ 351,000 | $ 314,000 |
Causes of Action (Details)
Causes of Action (Details) $ in Thousands | Aug. 06, 2021Action | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Causes of Action [Abstract] | |||||
Amount from settlement of causes of action | $ 468 | $ 1,278 | $ 26,683 | $ 8,443 | |
Allocation of Settlement Proceeds [Abstract] | |||||
Trust's net portion | 24,815 | 24,815 | |||
Payable to non-contributing claimants | 15,600 | 15,600 | |||
Payable for approved legal fees and litigation costs | 13,960 | 13,960 | |||
Payable for incentive awards | 100 | 100 | |||
Payable for administrative costs relating to non-contributing claimants | 25 | 25 | |||
Proceeds from settlement | 54,500 | ||||
Amount payable to non-contributing claimants | 13 | 13 | |||
Amount payable for court approved notice and administrative costs | 25 | 25 | |||
Comerica Bank [Member] | |||||
Causes of Action [Abstract] | |||||
Amount from settlement of causes of action | 0 | 0 | 24,815 | 0 | |
Number of pending actions settled | Action | 2 | ||||
Other Settlement Recoveries [Member] | |||||
Causes of Action [Abstract] | |||||
Amount from settlement of causes of action | $ 468 | $ 1,278 | $ 1,868 | $ 8,443 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jun. 04, 2021USD ($)Option | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)Option | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) |
Commitments and Contingencies [Abstract] | ||||||
Construction contracts unpaid | $ 5,200 | $ 5,200 | ||||
Number of options to extend lease | Option | 1 | 2 | ||||
Option to extend lease | 3 months | 6 months | ||||
Annual rent | $ 43 | |||||
Payment relating to prepaid rent, common area maintenance charges and a security deposit | $ 55 | |||||
Rent paid | $ 0 | $ 76 | $ 50 | $ 221 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 13, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Liquidation Trustee [Member] | |||||
Related Party Transactions [Abstract] | |||||
Amount paid to related party | $ 0 | $ 0 | $ 184,000 | $ 491,000 | |
Subsequent Event [Member] | |||||
Distributions [Abstract] | |||||
Disallowed or cancelled claims, cash released from restricted cash account | $ 52,000 | ||||
Sales of Real Estate Assets [Abstract] | |||||
Proceeds from escrow | 1,800,000 | ||||
Construction Contracts [Abstract] | |||||
Increase in construction contracts | 106,000 | ||||
Causes of Action [Abstract] | |||||
Settlement of causes of action | 23,000 | ||||
Amount due to liquidation trustee | 1,000 | ||||
Subsequent Event [Member] | Liquidation Trustee [Member] | |||||
Related Party Transactions [Abstract] | |||||
Amount paid to related party | 1,241,000 | ||||
Subsequent Event [Member] | Class A [Member] | |||||
Distributions [Abstract] | |||||
Allowed claims, distributions paid from restricted cash account | $ 92,000 |