Dowling College OK’d to remit $20 million of proceeds to DIP agent

By Caroline Salls

Pittsburgh, Oct. 2 – Dowling College received court approval to remit $20 million of the $24.97 million in net proceeds from the sale of its Oakdale, N.Y., campus to debtor-in-possession lender agent UMB Bank, NA, according to an order with the U.S. Bankruptcy Court for the Eastern District of New York.

As required by the DIP note, the college said the remittance will be applied by the agent to some of Dowling’s obligations under the DIP note and 2006 bonds.

Dowling said it estimates that the remittance will pay off its current obligations under its DIP term loan A, as well as a portion of the term loan D that is attributable to the term loan A lenders, and then to make a partial payment on account of the college’s pre-bankruptcy obligations under the 2006 bonds.

“The remittance will result in a material savings on accrued interest,” the motion said.

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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