Charter Schools Financier blames bankruptcy on splash with Backer | Company Business News

(Bloomberg)-An important financier of US charter schools has lodged bankruptcy and blamed the subsidies of the pandemic era that reduced the demand for its services and a dispute with a top shareholder, New York investment firm Orthogon Partners Investment Management. Charter School Capital provided financing to about one in eight of the 8,000 charter schools in the US, the company said in court documents filed on Monday. The company said its battle would go back to 2022 because public schools, including charter schools, gained access to federal cash in response to the Covid-19 pandemic. Before the pandemic, CSC did $ 300 million a year in business through its money to run your school program. In 2024, the number dropped to $ 32.6 million according to court documents. “Schools generally remain in a relatively strong financial condition with a limited need for additional funding,” CSC CEO Stuart Ellis said in a court case. CSC said rising interest rates and property values ​​also injured the real estate company of the company, which involves the rule of sales and rent-back transactions with charter schools. The company said a dispute with Orthogon CSC was in bankruptcy after the investment firm won an arbitration award of $ 3 million in earlier this month related to a 2024 land sale and refinancing agreement. CSC says there were errors with their financial reports, which started the dispute. The company’s other top debt includes a $ 8.5 million, guarantee of real estate loan and $ 700,000 to unpaid seller and leases. The company had only $ 1.3 million in cash when it brought its case on Sunday. The bankruptcy is Charter School Capital, Inc. 25-11016, US Bankruptcy Court, Delaware District. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP