[Alumni-chat] RE: [Organizers] [SaveAntioch] [Communications] Pension Funds

[t Sanford]

I suggest that list the alumni chat for march by author and read Laura's and Pete's commentary on the McGregor bond issue, the terms of default and the use of an inflated value of college assets. These posts clearly outline why the cash up front is so important.
 
As ellen and others have pointed out, in the end it has little to do with money (though the U did say it was all about money and so have committed themselves to resolution over that single point) it is about power and funding for Antioch University expansion. Toni Murdock believes that colleges like ours are a thing of the past, irrelevant or certainly unfundable in the education market today. They have stated in Board meetings and presentations on the state of the U that they plan for a $25MM expansion in Seattle, in the next five years!

 


From: Cdelairre at aol.comDate: Tue, 1 Apr 2008 06:23:31 -0400To: cashdevine at gmail.com; communications at antiochians.orgCC: organizers at antiochians.org; alumni-board at antiochians.org; chapters at antiochians.org; alumni-chat at w3.antioch.edu; tganges at umflint.edu; SaveAntioch at lists.antiochians.orgSubject: Re: [Organizers] [SaveAntioch] [Communications] Pension Funds


Thanks Bob,
 
I believe that takes this concern off the table. I'm trying to reconcile why the UBOT would not accept a legitimate offer that in effect returns the Yellow Springs Campus to the University if AC3 fails to make the second installment in the required time. Depending upon how a lease structure is set up, the assets might remain on the University's balance sheet eliminating creditor concerns. At the point of transfer the assets would be valued at the purchase price and the University should be indifferent with regard to asset vs cash, from a balance sheet perspective. 
 
There is either an immediate need for the cash, or there is a carrot at the end that we are not taking into account. I am trying to determine what that might be. It may well be as has been stated here many times that the University needs the cash to meet covenants of the McGregor financing. If this is the case, is there a financial instrument that can be taken out that relieves the immediate need for cash experienced by the UBOT that can be backed by AC3 as part of the transaction? ( I know this seems like adding insult to injury, as the original funds should have been used for the campus, but emotions aside.) We really need to find a way to meet concerns on both sides over the long term for any transaction to materialize. It doesn't help that we have to guess about what might be critical UBOT issues. If this were done in an open forum we might be able to find a solution that meets the needs of all parties. I think it's the secret nature of the procedings that is at impasse not our objectives or goals. 
 
 
Cross De Lairre
Class of 80


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