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Furious teachers at a recently shuttered Detroit charter school were notified Wednesday that they won't be paid thousands of dollars they earned during the last school year.
"Last Friday, Matchbook Learning became aware that the holders of MTA's outstanding bond debt are refusing to allow use of funds for any summer payroll and instead, are requiring that any available funds be used toward payment of the bond debt," Matchbook's CEO Sajan George told teachers in the email. "We are disappointed and deeply saddened by this development because this means funds will not be there for July or August payroll."
Source Chalkbeat
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Charter School Bond Holders Refuse to Allow Use of Funds for Payroll
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Remember Darwin; building a better mousetrap merely results in smarter mice.
(Score: 0) by Anonymous Coward on Saturday July 29 2017, @04:11PM (1 child)
Bond holders are not investors. Bond holders are lenders. Borrowing money is one dimension of raising capital -- borrowing money at a specified interest rate with a secured promise to repay the principle. Stock holders, on the other hand, are investors. Stock holders are entitled to a share of the profits and a big win if the organization is financially successful, but they are not promised anything beyond that potential win and are exposed to total loss of invested capital if the organization folds.
(Score: 2) by Grishnakh on Monday July 31 2017, @03:53PM
Ok, but as far as I'm concerned, lenders are down at the bottom of the chain too, just above stockholders, but well below employees. Lending is risky, and you can lose your money. If you don't like that, don't lend your money out.