Dowling College goes to campus sale back-up bid, gets more financing

By Caroline Salls

Pittsburgh, June 23 – Dowling College asked the U.S. Bankruptcy Court for the Eastern District of New York to confirm back-up bidder NCF Capital Ltd. or its designee as the successful bidder for the college’s Oakdale, N.Y, campus after the original high bidder failed to close the sale, according to a motion filed Friday.

As previously reported, Dowling received court approval to sell the Oakdale campus to Princeton Education Center LLC for $26.5 million. NCF was named as the back-up bidder with a final offer of $26.1 million.

Princeton requested an extension of the closing deadline in its sale agreement.

However, instead of the three weeks requested, Dowling gave Princeton 15 days to close the sale and told Princeton it would keep its deposit as liquidated damages if it did not meet the deadline.

Princeton informed Dowling on June 19 that it would not be able to close the sale as scheduled on June 20 because it lacked funds to do so.

Also on Friday, the court approved Dowling’s continued use of debtor-in-possession financing through July 14.

The order also increased the total term loan A commitment by $68,800 to $2.24 million, the total term loan B commitment by $29,250 to $341,163, the total term loan C commitment by $17,000 to $256,055 and the total term loan D commitment by $399,943 to $2.65 million.

Dowling is based in Oakdale, N.Y. The college filed for bankruptcy on Nov. 29, 2016 under Chapter 11 case number 16-75545.

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