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Dave Larsen writes about higher education.Home > Blogs > On Campus > Archives > 2008 > March > 29 > Entry
Antioch University still willing to sell college
In a last-minute offer Saturday night, Antioch University said it will re-open negotiations with the Antioch College College Continuation Corporation or any other party to sell the college for $12.2 million as long as the two sticking points that caused an impasse between the two parties can be resolved.
In it’s “best and final offer” this week the corporation offered to buy the college for $12.2 million in order to make Antioch College independent. But its offer of providing half the cash at closing and pay the balance over a five-year period was not acceptable to the university, both parties announced Friday, March 28. The university said it needs the entire cash amount up front, at closing. The corporation also wanted National Public Radio affiliate WYSO including in the sale. The university could not agree to that either, it said.
After that announcement, trustees then voted to re-open the negotiations and said it will agree to an offer from the ACCC or any other party as long as they can provide the cash up front.
Lynda Sirk, spokeswoman for Antioch University, said that trustees “feel that if they can work out the financing on 12.2 million, the rest is definitely workable.” So it sounds like they’re willing, maybe, to let go of WYSO for the cash.
Here’s why they opted to be a bit more flexible. From their press release:
In the wake of the ACCC announcement at noon on March 28, the Antioch University Board of Trustees met and expressed deep disappointment at not having reached an agreement with only 2 items remaining—the need for underwriting appropriate security for the $6.2 million the ACCC proposed to pay in installments over five years, and ownership of WYSO. Recognizing that every day of delay is a day lost towards reaching the goal sought in common by all parties, the Board is prepared and willing to negotiate at any time with any party to the end of assuring a vigorous, progressive residential liberal arts college while at the same time protecting the viability and vitality of the University. “We recognize the importance of Antioch College not only to the nation at large but also to the economic health and vitality of the historic village of Yellow Springs, Ohio,” said Art Zucker, “and to the dedicated faculty and students and staff and alumni who have championed Antioch College throughout its storied history and to the present day.” In going forward, the Board will receive formal or informal inquiries made to the Chancellor of Antioch University or the Chair of the Board of Trustees at their corporate headquarters in Yellow Springs, Ohio.”
Here’s a recap from Friday’s impasse. You can read the full story here.
Friday, March 28: Antioch University officials said Friday they rejected an offer from an independent corporation of wealthy alumni to purchase the college for an agreed-upon price of $12.2 million because it needed the whole kit-and-caboodle up front, at closing to keep creditors satisfied.
The Antioch College Continuation Corporation, a Yellow Springs-based non-profit corporation of alumni and former trustees, proposed in December buying the college from the university to make it an independent institution. Negotiations took on a sense of urgency in late February, when the university trustees reaffirmed their June 2007 decision to close Antioch College for a year starting this June, after initial negotiations with the AC3 did not produce an agreement. The final impasse came today, after trustees evaluated what ACCC said was its “best and final” offer Wednesday night.
The university said today the ACCC offered to pay half the purchase price at closing, and then pay the rest over five years. But an installment arrangement would not be acceptable to the university’s creditors “which must ratify the terms of the deal,” the university said. That was the deal-breaker. If they agreed to the deal and for some reason ACCC defaulted on those last remaining payments, “the university’s only remedy wold be to foreclose on the real estate,” Bruce Bedford, chair of the trustee finance committee, said in the statement.
Permalink | Comments (5) | Post your comment | Categories: Antioch College
Comments
By Jeannine
March 29, 2008 11:05 PM | Link to this
Stephanie: I hope you will consider submitting some of last year’s work into The Society of Professional Journalists Contest. Please contact me and I’ll send you everything you need. Jeannine Gallenstein WCPO-TV Producer 513 852-4082By daniel
March 30, 2008 7:00 AM | Link to this
it makes me wonder why the gov.bails out any black university as central state and yet wont do anything for this one!!! if this was a black school the gov would be doing everything to help and keep it open no matter what!!!!!!By Dave
March 30, 2008 12:03 PM | Link to this
So much for the trustees claim to “close for one year”.By Ecco
March 30, 2008 5:23 PM | Link to this
As a graduated former student, I can tell you first hand that the people in charge of the university raise serious qualification concerns. It has become extremely obvious to the entire student body and faculty over the past few years that the administration was either maliciously trying to close the college, or was just so bad at their jobs that they simply had no idea how to effectively run a school. Antioch would not be closed or sold if the powers that be were not actively running it into the ground.By Cowboy
March 30, 2008 6:01 PM | Link to this
Maybe a junior college like ITT Tech or DeVRY can buy it and make it profitable?