Two months into bankruptcy, the Woodbridge Group of Cos. is on its third board of managers, second chief restructuring officer, second lead law firm and has undertaken to support three investor committees and an assortment of advisers, according to a WSJ Pro Bankruptcy commentary. For bankruptcy professionals, the company at the center of an alleged $1.2 billion Ponzi scheme is the “land of milk and honey,” in the words of one of the lawyers at a Monday hearing in the U.S. Bankruptcy Court in Wilmington, Del. Before it starts paying investors, Woodbridge has work to do on a real-estate portfolio that it has estimated is worth upwards of $600 million. So far, the company has managed to win court approval to sell an unbuildable plot of land in Los Angeles. Woodbridge purchased the land in 2014 for $1.4 million and is selling it for $1.5 million. Sale documents don’t say how much the land absorbed in the way of fees and carrying costs before Woodbridge arrived at the conclusion it wasn’t really a suitable site for a luxury home.
