Closed Philadelphia Arts School Gets Urgent Bond Payoff Demand
- University of the Arts trustee seeks accelerated default cure
- UMB Bank cites surprise shutdown in repayment request
The University of the Arts in Philadelphia, Pennsylvania.
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The University of the Arts, the private college in Philadelphia that abruptly closed its doors in June, faces a demand by its bondholders for immediate repayment of more than $50 million in debt.
UMB Bank N.A., the trustee for bondholders, said in a regulatory filing on Wednesday that it sent the school a “notice of events of default, acceleration and demand for payment.” Under an acceleration, bondholders can call for the debt to be paid instantly.