Saint Catharine’s College (“SCC” or the “College”) publicly announced its closure on June 2, 2016, citing as reasons ongoing disputes with the U.S. Department of Education over federal student aid reimbursements and inability to meet its debt obligations accumulated due to construction on the campus READ MORE –
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ST CATHERINE’S COLLEGE BONDS ARE IN DEFAULT
When Saint Catharine’s College Inc., of Saint Catharine, Kentucky closed its doors for the last time in July, 2016, it caused in excess of $20 Million in municipal revenue bonds to go into default. It was a very tragic and disturbing end to the small Roman Catholic Liberal Arts College serving the needs of Central Kentucky. In the mid-nineteenth century the Dominican Sisters of Kentucky started the institution as a girls’ boarding school and maintained a close relationship with the College throughout the years.
MihalekLaw is presently investigating the underwriting, marketing and solicitations of these bonds to investors who believed these bonds were safe, secured by real estate mortgages and suitable for conservative, risk adverse investors. These bonds were unrated revenue bonds. Once the school closed, the revenue disappeared. So far, we have met with several persons close to the situation and learned that Saint Catharine College was in dire financial straits well before the 2014 Bond Issue. We are investigating whether the covenants contained in the Trust Indenture governing the issuance of the bonds were complied with.
MihalekLaw has already been retained by several bondholders to pursue FINRA arbitration cases against Ross, Sinclaire and Associates, LLC, and its control persons and have been contacted by several others. If you are a Saint Catharine College bondholder interested in receiving some or all of your investment back, contact us immediately for a free consultation at 859-233-1805 or 1-800-294-9198
There are at least two lawsuits filed in connection with the Saint Catharine College demise. The first involves a federal suit by Saint Catharine College against the Unties States Department of Education. That case has been dismissed in favor of the Defendants. If you click on this link, you will find the pertinent pleadings in this case. Saint Catharine College, Inc. v. John B. King, Jr., in His Official Capacity as the Acting Secretary of the United States Department of Education, and Kathy Feith, in Her individual Capacity as an employee of the United States Department of Education,. U.S.D.Ct. W.D.Ky, Civil Action No. 3:16-cv-00113-GNS.
The second lawsuit was filed by the Huntington National Bank, Trustee appointed by the Trust Indenture, which governed these Saint Catherine bonds. The Trustee filed a lawsuit in Federal Court in Louisville, KY and requested that a Receiver be appointed. A Receiver has now been appointed and is selling the real property and remaining assets of Saint Catharine’s College for the benefit of the bondholders. All the personal property has been sold. A bid of $4.7 Million has been received from the real property. For more information please click. The Huntington National Bank, as Trustee v. Saint Catharine College, Inc., U.S.D.Ct. W.D.Ky., Civil Action No. 3:16-cv-00465-DJH.
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