Woodbridge Liquidation Trust (OTC: WBQNL) is a bankruptcy liquidation trust established to wind down the estate of Woodbridge Group of Companies following its December 4, 2017 bankruptcy filing, which arose from a Ponzi scheme operating from July 2012 through that date. The Trust generates proceeds by selling real estate assets and pursuing legal recoveries, then distributing those proceeds to Interestholders holding Class A and Class B Liquidation Trust Interests. As of June 30, 2025, the Trust has liquidated all but one real estate asset, which carried a net value of approximately $0.24 million. Since inception on February 15, 2019, the Trust has issued 11,544,753 Class A Interests and 678,123 Class B Interests in total. The Trust is also prosecuting four fraudulent transfer legal actions in the U.S. Bankruptcy Court for the District of Delaware. As of the 10-K filed September 25, 2025, future distributions are uncertain pending resolution of an outstanding construction defect claim and its related litigation.
- Revenue model
- The Trust generates cash through real estate asset sales and legal recoveries from fraudulent transfer actions, then distributes net proceeds to Interestholders. As of December 17, 2024, a distribution of approximately $4.15 million (roughly $4.71 per $1,000 of allowed claim) was paid to Qualifying Victims from forfeited asset proceeds. Total declared distributions since inception include multiple rounds beginning March 15, 2019, with per-Class A Interest payments ranging from $2.12 to $4.50 per distribution round.
- Products and services
- The Trust issues Class A and Class B Liquidation Trust Interests to former creditors and claimholders as part of the bankruptcy reorganization plan. As of June 30, 2025, 11,515,807 Class A Interests and 675,951 Class B Interests were outstanding. These interests carry complex federal income tax treatment and were issued without Securities Act registration under the Section 1145(a)(1) Bankruptcy Code exemption.
- Customers and end markets
- Interestholders are primarily former creditors of the Woodbridge bankruptcy estate, including holders of allowed Class 3, Class 4, and Class 5 claims as of the Plan Effective Date and their permitted assigns. Qualifying Victims, defined as former holders of allowed Class 3 and Class 5 claims, received a separate distribution of approximately $4.15 million on December 17, 2024.
- Value-chain role
- The Trust acts as a court-supervised wind-down vehicle, selling legacy real estate assets, pursuing fraudulent transfer litigation against former agents of the Ponzi scheme, and distributing net recoveries to Interestholders. Any SEC Fair Fund recoveries related to the same scheme are to be transmitted to the Trust per agreement with the SEC.
Source: SEC 10-K, filed 2025-09-25
Industry:
Real Estate
