Dowling College Oakdale campus sale approved, DIP financing extended

By Caroline Salls

Pittsburgh, July 14 – Dowling College received court approval to sell its Oakdale, N.Y., campus to original back-up bidder NCF Capital Ltd.’s assignee. Mercury International, LLC, according to an order filed Friday with the U.S. Bankruptcy Court for the Eastern District of New York.

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.

The college said 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 the earlier of Oct. 31 and the occurrence of a termination event.

The order also amended case milestones so that the college must file a liquidation plan and related disclosure statement by Oct. 15 and obtain confirmation of the plan by Dec. 15. The plan must take effect by Dec. 31.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.