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Woodbridge OK'd For $215M In Del. Ch. 11 Noteholder Loans

Law360 (August 8, 2018, 8:08 PM EDT) -- Acknowledging a possible lack of precedent, a Delaware bankruptcy judge on Wednesday approved procedures for “distressed lending” to alleged Ponzi scheme noteholders trapped in The Woodbridge Group LLC Chapter 11, with up to $215 million in note-backed loans possible.

Woodbridge’s official committee of unsecured creditors and ad hoc noteholder group said they developed the borrowing option to aid noteholders — some of whom invested their life savings — while waiting for payments from bankruptcy.

Trading in or transfers of Woodbridge notes was barred at the start...
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