Frequently Asked Questions
The last date for filing proofs of claim against the Debtors (known as the “Bar Date”) for non-governmental creditors was June 19, 2018.
The Garden City Group is the Debtors’ claims agent and is responsible for, among other things, posting important information about the Debtors’ cases, receiving and causing proofs of claim to be filed on their database, distributing mailings to creditors on behalf of the Debtors and other administrative functions.
Venable LLP is a law firm that represents the court-appointed Ad Hoc Unitholders’ Group. It does not represent the Debtors, the Garden City Group or individual unitholders, it does not file proofs of claim and it does not have access to an individual unitholder’s documents. Rather, Venable advises the Ad Hoc Unitholders’ Group in regard to its role in the bankruptcy case, on a variety of matters that affect the unitholders as a class, and with respect to negotiating aspects of a plan.
The Unitholders’ Group represents your interests in connection with your Units. An Ad Hoc Group of Noteholders was also formed on January 23rd, and that Group represents your interests in connection with your Notes. Your interests may be different depending on the different instruments you own.
No, the Bankruptcy Court limited the Unitholders’ Group’s membership to two members, both of whom were selected at the time the Bankruptcy Court authorized the creation of the Unitholders’ Group.
The Bankruptcy Court authorized the Unitholders’ Group to litigate and/or negotiate, on behalf of all Unitholders: (i) whether the Unitholders should be treated as creditors or as equity holders in these chapter 11 cases, including in connection with a plan of reorganization for Woodbridge and/or asset sales that Woodbridge might undertake and (ii) whether substantive consolidation (consolidating all of the Woodbridge assets and liabilities in one bankruptcy estate) is in the best interests of the Unitholders. Implicit in the first task is also
an analysis of how the Unitholders should be treated if a court adjudicates that the Debtors were operating a Ponzi scheme. Resolution of these issues may impact the payments and recoveries you will receive in connection with your Units.
Now that Woodbridge is in bankruptcy, all payments of interest to Unitholders has stopped. Interest payments cannot start again unless and until the Bankruptcy Court authorizes payments to resume. It does not appear likely that Woodbridge will ask the Bankruptcy Court to allow it to continue making interest payments, and so they may be stopped indefinitely.
Yes, Woodbridge has advised the Unitholders’ Committee that it has prepared and recently delivered to all Unitholders IRS 1099 Tax Forms for 2017.
In a chapter 11 bankruptcy case, all payments to prepetition creditors (for example, the Unitholders) for principal and interest stop as of the date the case is commenced. Thereafter, the debtor and creditors try to negotiate or litigate a plan of reorganization that will provide creditors (and, if appropriate, equity holders) with distributions on their claims that is as close to what is owed to them as possible. There is no guaranty that such a plan will be achieved or that the Bankruptcy Court will approve such a plan, and it is too early to anticipate what recoveries a plan might provide in these cases.
The short answer is – you must file a proof of claim by June 19, 2018 if you have not been included in the Debtors’ Schedules that were filed with the Bankruptcy Court on April 12th. If you are correctly listed on the Debtors’ Schedules, you are not required to file a proof of claim. A more detailed answer is below.
The Bankruptcy Court has entered an order determining who must file proofs of claim and the deadline by which proofs of claim must be filed if necessary (the “Bar Date”). Unitholders who are properly listed on the Debtors’ filed Schedules (described below) are not required to file a proof of claim with respect to their Units; Unitholders whose names are missing from the Schedules or whose information on the Schedules is incorrect, must file a proof of claim with respect to their Units. Note, if you have more than one set of Units and one set is properly scheduled but another set is not, then you need only file a proof of claim for the set of Units that are not properly scheduled.
On April 12, 2018 (the “Schedule Filing Date”), the Debtors filed their Schedules with the Bankruptcy Court. To view these Schedules, visit the claims agent’s website by following the link provided on the Home page of this Woodbridge Unitholders’ website and click the link entitled Schedules of Assets and Liabilities on the left-hand side of the homepage.
To determine whether you must file a proof of claim in these cases, you should review Schedule E/F: Creditors Who Have Unsecured Claims filed by the particular Fund(s) in which you purchased your Units and confirm that your name, address and the dollar amount of outstanding principal related to your Units is properly listed. If you and your Units are properly listed on Schedule E/F, you are not required to file a proof of claim.
If, however, you are not listed in Schedule E/F for the Fund(s) in which you purchased your Unit(s) or the information listed next to your name is incorrect, you are required by the Bankruptcy Court to file a proof of claim by June 19, 2018. If you are not listed on the Schedules, you may not be a known creditor and may not receive a Bar Date package that includes a form of Proof of Claim. You may obtain a copy of the Proof of Claim from the claims agent’s website along with instructions on where to submit the form once you have completed and signed it. Please note that the Proof of Claim form on the claims agent’s website has two additional questions on it (#13 and #14) that do not appear on the basic form published by the Bankruptcy Court. The filing of either form will preserve your claim.
Effectively, the Woodbridge bankruptcy cases will be over on the earliest to occur of (a) confirmation and effectiveness of a plan of reorganization and (b) conversion or dismissal of the cases. It is unlikely that either of these events will occur for several months.