A reader has sent along this important news on Thomas Jefferson Law School's agreement regarding its obligations with its Bondholders. Cribbing now from the story:
[T]he bonds will be cancelled. In exchange, the bondholders will become owners of the building and lease it back to the school. In addition, the bondholders will also receive $40 million in new notes at an interest rate of 2 percent. Interest rates on the previous outstanding taxable bonds were over 11 percent, with non-taxable bonds at over 7 percent.
The agreement cuts the school’s debt by nearly $87 million, from $127 million to $40 million, and results in a significant improvement in cash flow. Previously, the school was paying about $12 million a year in principal and interest on its debt. Under the restructuring, the school will pay $5 million in annual rent and about $1 million a year in interest expense, cutting its annual payments to the bondholders by almost 50 percent to a total of $6 million.
This looks like an important victory for Thomas Jefferson.
Update: As "Confused by your post" points out, the documents related to this are available on-line.