Related Party Transactions

9 Months Ended

Mar. 31, 2021

12)	Related Party Transactions

Terry Goebel, a member of the Trust Supervisory Board, is president and a principal owner of G3 Group LA, a construction firm specializing in the development of high-end luxury residences. G3 Group LA is owned by Terry Goebel and his son Kelly Goebel. As of March 31, 2021, the Company was under contract with G3 Group LA for the development of one single-family home in Los Angeles, California. One additional construction contract was assumed by the buyer of a single-family home in November 2019. As of March 31, 2021 and June 30, 2020, the remaining amounts payable were approximately $5,845,000 and $8,133,000, respectively. During the three and nine months ended March 31, 2021 and 2020, approximately $1,496,000 and $2,877,000, and $5,887,000 and $8,801,000, respectively, were paid by the Company to G3 Group LA.

The Liquidation Trustee of the Trust is entitled to receive 5% of the total gross amount recovered by the Trust from the pursuit of Trust claims and Causes of Action. During the three and nine months ended March 31, 2021 and 2020, approximately $72,000 and $59,000, and $462,000 and $238,000, respectively, were accrued as amounts due to the Liquidation Trustee. As of March 31, 2021 and June 30, 2020, approximately $90,000 and $119,000, respectively, were payable to the Liquidation Trustee. These amounts are included in accounts payable and accrued liabilities in the accompanying consolidated statements of net assets in liquidation. During the three and nine months ended March 31, 2021 and 2020, approximately $0 and $0, and $491,000 and $0, respectively, were paid to the Liquidation Trustee.

In November 2019, the Trust entered into an arrangement with Akerman LLP, a law firm based in Miami, Florida of which the Liquidation Trustee is a partner, for the provision, at the option of the Trust on an as-needed basis, of e-discovery and related litigation support services in connection with the Trust’s prosecution of Causes of Action. Under the arrangement, the Trust is charged for the services at scheduled rates per task which, depending on specific task, include flat rates, rates based on the volume of data processed, rates based on the number of data users, the hourly rates of Akerman LLP personnel, or other rates. During the three and nine months ended March 31, 2021 and 2020, approximately $109,000 and $426,000, and $314,000 and $426,000, respectively, were paid related to these services and there are no outstanding payables as of March 31, 2021 or June 30, 2020.

The executive officers of the Wind-Down Entity are entitled to a bonus based on the Wind-Down Entity achieving certain specified cumulative amounts of distributions to the Trust. Based on the carrying amounts of the net assets in liquidation included in the accompanying consolidated statements of net assets in liquidation, approximately $3,040,000 and $3,840,000, were accrued as of March 31, 2021 and June 30, 2020, respectively, as the estimated amount of the bonus (including associated payroll taxes). These amounts are included in the payroll and payroll- related costs portion of accrued liquidation costs in the accompanying consolidated statement of net assets in liquidation. During the three and nine months ended March 31, 2021 and 2020, approximately $1,025,000 and $831,000 and $1,025,000 and $831,000, respectively, were paid related to the bonuses.