Law school misses bond payment, seeks to restructure obligations
Thomas Jefferson School of Law is “engaged in constructive dialogue” to restructure its obligations to bondholders after missing a June 26 payment.
In a statement provided to Above the Law, the school says it has paid most of the June payment, and it has an interim agreement running through Oct. 16 in which bondholders won’t exercise their remedies. Thomas Jefferson School of Law is “confident that a consensual restructuring will occur,” the statement says.
“The parties have a mutual interest in restructuring the law school’s debt in a way that will allow the school to remain in operation and prosper,” the school’s statement said. “As part of the negotiations, various potential structures and restructuring alternatives have been discussed. At the core of each alternative is ensuring the school can provide the educational experience required of an ABA accredited school and ensure the school’s long term success.”
Above the Law broke the news of the default. The school opened a new campus building in 2011 and its financial obligations now total $133 million, the blog says.
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