Education Resources Institute eyes settlement with First Marblehead

By Lisa Kerner

Charlotte, N.C., Oct. 12 - The Education Resources Institute, Inc. (TERI) asked the court to approve a stipulation to resolve claims of First Marblehead Education Resources, Inc., the First Marblehead Corp. and First Marblehead Data Services, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

In 2001, TERI entered into several agreements to transfer substantially all of its loan-related assets and administrative operations to the First Marblehead Corp. (FMC).

FMC proofs of claim total approximately $87 million in liquidated amounts and also include an unliquidated claim for indemnity and reimbursement.

The debtor believes that the FMC entities could demonstrate a claim for $776,000 in lease rejection claims and $13 million for reimbursement of past services but does not believe FMC has a valid claim for indemnification or reimbursement.

Under the stipulation:

• FMC subsidiary Firms Marblehead Education Resources will have an allowed, unsecured, non-priority claim in the amount of $27,177,645;

• FMC will have an allowed, unsecured, non-priority claim in the amount of $921,084; and

• First Marblehead Data Services' claim will be disallowed and expunged.

TERI, a Boston non-profit access-to-education promoter, filed for bankruptcy on April 7, 2008. Its Chapter 11 case number is 08-12540.

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