SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Woodbridge Group of Companies, LLC and certain of its affiliates and subsidiaries (together “the Company” or “Woodbridge”), announced today that its first day hearing with the United States Bankruptcy Court for the District of Delaware related to its Chapter 11 filing was successful. The Bankruptcy Court issued authorizations on an interim basis that, collectively, will help ensure the Company is able to continue operating its business in the ordinary course during its restructuring process.
"The Court's authorizations represent a positive and important step in the restructuring process, from which we expect Woodbridge to emerge with a stronger financial foundation,” said Larry Perkins, Chief Restructuring Officer for Woodbridge. “These Court approvals allow us to continue business in the normal course, including paying vendors, employees and suppliers.”
“We are now focused on developing a comprehensive Plan of Restructuring that will maximize value for all of Woodbridge’s most important stakeholders," said Sam Newman, Partner of Gibson Dunn and legal counsel to the Company.
Woodbridge has been given access to its debtor-in-possession ("DIP") financing, which will be available on an interim basis. This DIP financing, combined with cash on hand and cash generated by the Company, will support ongoing operations during the process. The Company also received approval to, among other things, pay employee wages and benefits. Woodbridge intends to pay vendors in the ordinary course for goods and services provided after the filing date and expects construction and completion of assets to continue uninterrupted.
As previously announced, on December 4, 2017, Woodbridge filed voluntary Chapter 11 petitions in the Bankruptcy Court for the District of Delaware to facilitate a debt recapitalization and better position the business for long-term growth and success. The final Court hearing to confirm these motions is set for December 20, 2017 at 12pm ET.
As previously announced, the Company is cooperating fully with the Securities and Exchange Commission (“SEC”) on its investigation of certain of the Company’s business practices. To that end, upon filing for Chapter 11, the Company immediately notified the SEC and requested a meeting in an effort to work cooperatively. Moreover, effective December 1, 2017, the Company replaced Woodbridge founder and Chief Executive Officer, Robert Shapiro, with a Chief Restructuring Officer, Lawrence Perkins of SierraConstellation Partners LLC, and an Independent Manager, Marc Beilinson of Beilinson Advisory Group. Mr. Perkins and Mr. Beilinson have full oversight and authority over all operations during the pendency of the case and are working to maximize recovery for all stakeholders, including Note and Unit holders. As part of this, Woodbridge has ceased selling any Note-related products.
Woodbridge investors can get additional information about their investments by visiting http://dm.epiq11.com/#/case/woodbridge/info or call toll-free in North America 855-590-2141 or toll-free outside of North America at 503-520-4477.
Court filings and other information related to the restructuring are available at www.gardencitygroup.com/cases/WGC or by calling toll-free at 888-735–7613.
Gibson Dunn & Crutcher is serving as legal advisor, SierraConstellation Partners LLC is serving as chief restructuring officer and financial advisor, and Beilinson Advisory Group is serving as independent management to the debtors.
About Woodbridge Group of Companies
Woodbridge Group of Companies, LLC and its management team have over 35 years of experiences with next generation financial products. Our team has completed over $1 billion in financial transactions throughout the years.