December 4, 2017 / 4:42 PM / 10 months ago

Real estate developer Woodbridge files for bankruptcy amid SEC probe

Dec 4 (Reuters) - Real estate developer Woodbridge Group of Companies filed for Chapter 11 bankruptcy on Monday, citing costs of expansion, litigation and a government fraud investigation.

The U.S. Securities and Exchange Commission has been investigating Woodbridge since 2016 for possible fraudulent sales of securities, according to court documents.

Woodbridge, which is based in Sherman Oaks, California, said it would fully cooperate with regulators.

The privately owned company has raised nearly $1 billion from about 11,000 investors, according to documents filed in the U.S. Bankruptcy Court in Delaware.

Woodbridge, which calls itself a leading developer of high-end real estate, said it planned to use Chapter 11 to restructure $750 million in debt and had already obtained a commitment for up to $100 million in debtor-in-possession financing.

Chief Executive Officer Robert Shapiro resigned on Friday, and turnaround specialist Lawrence Perkins of SierraConstellation Partners has taken over as chief restructuring officer, Woodbridge said. (Reporting by Tracy Rucinski in Chicago and Tom Hals in Wilmington, Delaware; Editing by Lisa Von Ahn)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below