EDUCATION DIVE: Judge orders Education Management Corp. to continue paying bondholders
Career College Central Summary:
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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.
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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."
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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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EDUCATION DIVE
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