San Diego : USIU Postpones Payment of Debts
The president of financially strapped United States International University said the school will postpone paying its largest creditors for 3 1/2 months.
USIU President Gary Hays said Wednesday, the due date for the school to pay, that USIU will use an automatic 3 1/2-month extension on the deadline to pay its largest creditors.
The extension, part of an agreement worked out earlier with creditors, gives the school until Nov. 1 to repay creditors with no legal or financial consequences.
Creditors, including Mission Federal Credit Union and Bank of America, have $4 million in liens on university property. The university went into bankruptcy in December, 1990.
The university is trying to sell property in London and on its main campus in the Scripps Ranch area of San Diego. The university has suffered from weak real estate and financial markets.
If the debt is not paid by the new deadline, USIU would have to sell off its San Diego campus, although the university would have a grace period of seven months to one year.
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