Metropolitan College of New York is making a strategic decision to sell part or all of its Manhattan campus. A spokesperson indicated that the Manhattan space is underutilized, and this is a necessary step for the college following the breach of bond covenants and to manage its financial obligations.
The forbearance agreement reached with bondholders allows MCNY to defer a debt payment scheduled for November 1. This comes in light of the college struggling with $61 million in outstanding municipal bonds, signaling significant financial restructuring.
Despite the challenges, MCNY remains dedicated to consolidating its operations effectively. The college plans to streamline its resources across its campuses, ensuring that educational services are maintained while addressing the current financial pressing circumstances.
MCNY's enrollment has sharply declined, with current figures showing 735 students compared to more than 1,200 a decade ago. This declining trend exacerbates the financial difficulty faced by the institution in a competitive educational landscape.
#metropolitan-college-of-new-york #real-estate #financial-restructuring #enrollment-decline #bondholders-agreement
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