Woodbridge Group of Companies Implements Debt Restructuring via Voluntary Chapter 11; Independent Management and Chief Restructuring Officer Appointed; Normal Business Operations to Continue Uninterrupted

Up to $100 million in debtor-in-possession financing obtained

SHERMAN OAKS, Calif.--()--The Woodbridge Group of Companies, LLC and certain of its affiliates and subsidiaries (together “the Company” or “Woodbridge”) announced today that it has commenced a process to implement a debt recapitalization intended to restructure its approximately $750 million in debt. To facilitate this, Woodbridge filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Woodbridge will continue to operate as before through the Chapter 11 proceedings.

“Using the Chapter 11 process, the Company will be able to continue its normal daily operations and expedite the process of recapitalizing its debt. We are focused on developing a plan of reorganization to emerge from Chapter 11 as a strong and viable company.”

In support of this restructuring, the Company obtained a commitment for up to $100 million in debtor-in-possession ("DIP") financing from Hankey Capital, LLC, providing sufficient liquidity to maintain its operations and continue property development in the ordinary course of business during the Chapter 11 process.

Historically a leading developer of high-end real estate, as the size and scope of the business has grown, increased operating and development costs have been exacerbated by the unforeseen costs associated with ongoing litigation and regulatory compliance. This combination of rising costs and regulatory pressure led to a loss of liquidity, resulting in Woodbridge’s inability to make its regularly scheduled one-year Notes payment due December 1, 2017. In consideration of all of these factors, the Company determined that a recapitalization of its debt provides the most efficient and effective path to restructure debt and maximize recovery for its creditors and investors.

In September 2016, the Company came under investigation by the United States Securities and Exchange Commission (“SEC”), in connection with alleged securities law violations. The Company will continue to cooperate fully and work with the SEC and state regulators toward resolution of any investigations.

Woodbridge has also restructured its management team. President, Manager and Chief Executive Officer of Woodbridge Group of Companies, Robert Shapiro, resigned effective December 1, 2017, and is engaged in a consulting capacity to the Company. Lawrence Perkins, of SierraConstellation Partners, has been appointed Chief Restructuring Officer, and Marc Beilinson, of Beilinson Advisory Group, has been appointed as Independent Manager. Mr. Perkins and Mr. Beilinson will lead, manage, and oversee the Company’s businesses.

"Woodbridge has already taken a number of steps in the right direction to rebuild a solid financial platform,” said Mr. Perkins. “Using the Chapter 11 process, the Company will be able to continue its normal daily operations and expedite the process of recapitalizing its debt. We are focused on developing a plan of reorganization to emerge from Chapter 11 as a strong and viable company.”

“We have a strong, independent management team in place and an institutional source of capital that should set Woodbridge on a path to emerge with the financial flexibility the Company needs to continue its successful operation," said Mr. Beilinson.

The Company expects to exit bankruptcy as expeditiously as possible.

Woodbridge investors can visit 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 for additional information pertaining to investments. 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.

There are several divisions that specialize in real estate, note buying/selling, hard money lending and the alternative financial space. Throughout the years, Woodbridge brokers and managing directors have helped thousands of clients gain strong returns on countless financial opportunities.

Contacts

For Woodbridge Group of Companies, LLC
Media Inquiries:
Jennifer E. Mercer, 310-712-6215
jmercer@epiqsystems.com
or
Mickey Mandelbaum or Kris Cole, 212-279-3115
mmandelbaum@prosek.com
kcole@prosek.com
or
Investor Inquiries:
Woodbridge Investor Hotline:
Toll-free in North America
855-590-2141
or
Outside of North America
503-520-4477
woodbridgeinvestors@epiqsystems.com
Website: http://dm.epiq11.com/#/case/woodbridge/info