Accrued Liquidation Costs

9 Months Ended

Mar. 31, 2025

Accrued Liquidation Costs [Abstract]

Accrued Liquidation Costs

5)     Accrued Liquidation Costs

The following is a summary of the items included in accrued liquidation costs as of March 31, 2025 (unaudited), with comparative information as of June 30, 2024 ($ in thousands):

	March 31, 2025		June 30, 2024
Development costs	$	9,506	$	8,888
General and administrative costs:
Legal and other professional fees		5,848		7,453
Directors and officers insurance		2,582		3,132
Payroll and payroll-related		1,429		2,273
Board fees and expenses		300		525
Other		222		433
Total general and administrative costs		10,381		13,816
Total accrued liquidation costs	$	19,887	$	22,704

Accrued liquidation costs assume the completion of the liquidation activities by March 31, 2026. If the Trust is extended beyond March 31, 2026 to allow for additional time to complete the remaining liquidation activities, including resolving pending litigation, the Company will incur costs in addition to those that have been accrued to date.

The Company’s accrued development costs consist of costs incurred and to be incurred in connection with the construction defect claim asserted against the Development Entity. These costs include the estimated costs for the initial repair phase of the subject property, as well as estimated preliminary costs for the evaluation and engineering of subsequent repairs. Accrued development costs also include legal and professional fees for pursuing litigation related to the construction defect and related insurance claims but do not include costs that will be incurred for additional repairs to the property once the initial repairs are completed. Additional repairs beyond the initial phase will be necessary, but the scope of work, timing and cost are not currently estimable. These additional costs will be recorded when incurred or when the Company is able to estimate them. A portion of the development costs relate to estimated reserves for contingent liabilities, including other potential construction defect claims, and the administration of such claims after the Company’s liquidation activities are completed.

The Company is currently unable to estimate whether all or a portion of the total costs will ultimately be borne by third parties (including the Company’s insurers). Any insurance recoveries will be recorded when they are deemed probable and estimable. Insurance reimbursements are included in cash, cash equivalents and short-term investments and have not been netted against accrued development costs. 

See Note 12 for additional information.