Privately-held Woodbridge Group of Companies and certain of its affiliates and subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 17-12560. The Company, which develops real estate, is represented by Sean M. Beach of Young Conaway Stargatt & Taylor.
The Company announced that it commenced this process to implement a debt recapitalization intended to restructure its approximately $750 million in debt. In support of this restructuring, the Company obtained a commitment for up to $100 million in debtor-in-possession financing from Hankey Capital.
Woodbridge Group of Companies notes, “[A]s 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.”
The Company also announced the following management changes: President, manager and C.E.O. 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 C.R.O.; and Marc Beilinson of Beilinson Advisory Group has been appointed as independent manager.
Woodbridge Group of Companies’ Chapter 11 petition indicates total assets greater than $500 million.
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