Accrued Liquidation Costs

12 Months Ended

Jun. 30, 2024

Accrued Liquidation Costs [Abstract]

5)	Accrued Liquidation Costs

The following is a summary of accrued liquidation costs as of June 30, 2024 and 2023 ($ in thousands):

	June 30, 2024		June 30, 2023

Development and holding costs	$	8,888	$	4,757

General and administrative costs:
Legal and other professional fees		7,453		13,308
Directors and officers insurance		3,132		3,442
Payroll and payroll-related		2,273		2,757
Board fees and expenses		525		742
Other		433		493
Total general and administrative costs		13,816		20,742

Total accrued liquidation costs	$	22,704	$	25,499

During the quarter ended June 30, 2024, the Company accrued development costs of approximately $5.0 million relating to the construction defect claim asserted against one of the Wind-Down Subsidiaries. The development costs are an estimate of the costs to be incurred in the initial phase of repair. The costs are primarily comprised of estimated construction and related costs for an initial phase of repair as well as legal and professional fees for pursuing litigation related to the construction defect and related insurance claims. The Company is currently unable to estimate the costs to complete subsequent phases of repair. See Notes 12 and 13.

As discussed in Note 1, during the year ended June 30, 2024, due to significant delays in certain legal proceedings brought by the Company and a construction defect claim asserted against the Development Entity by the buyer of a single-family home, the Company requested, and the Bankruptcy Court granted, an extension of the termination date of the Trust from February 15, 2024 to March 31, 2026.

The change of the estimated completion date of the Company’s liquidation activities resulted in an additional accrual of accrued liquidation costs of approximately $7.7 million during the quarter ended June 30, 2023. The additional costs were primarily comprised of legal and other professional fees and payroll and payroll-related costs. A portion of the accrued liquidation costs relate to estimated reserves for contingent liabilities including potential construction defect claims and the administration of such claims after the Company’s liquidation activities are completed.