Dowling College withdraws motion for approval of support agreement

By Caroline Salls

Pittsburgh, April 25 – Dowling College withdrew its motion to enter into and perform under a plan support agreement, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Eastern District of New York.

The notice did not give a reason for the withdrawal.

As previously reported, the college also entered into a plan support agreement with series 2006 bond insurer ACA1 and the holders of its series 1996 bonds, series 2002 bonds and series 2015 bonds.

Under the plan proposed by the agreement, administrative claim, U.S. Trustee fees and debtor-in-possession facility claims would be paid in full in cash.

Consenting creditors would receive their respective cash collateral, the cash sale proceeds from and a deficiency claim for any balance.

Other secured claims would be paid with the proceeds from the sale of collateral.

Holders of general unsecured claims would receive proceeds from the sale of any of the college’s unencumbered assets and any remaining collateral proceeds after payment in full of priority unsecured claims and satisfaction in full of secured creditor claims.

Dowling is based in Oakdale, N.Y. The college filed for bankruptcy on Nov. 29 under Chapter 11 case number 16-75545.

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