EDUCATION DIVE: Judge orders Education Management Corp. to continue paying bondholders
Career College Central Summary:
For-profit college operator Education Management Corp. lost a battle with one of its hedge fund bondholders and now will have to continue making payments on $14 million in bonds.
The Wall Street Journal reports a federal judge ruled in favor of Marblegate, finding Education Management Corp. must guarantee "past and future payments of principal and interest."
Had the company filed for bankruptcy, Marblegate wouldn’t have had a case, but The Wall Street Journal reports Education Management stuck with out-of-court restructuring to continue its flow of federal student loan funding.
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