Wednesday, March 05, 2008
Blood Money
Since June, when the end of New College of California was a foregone conclusion, New College trustees have been busy liquidating assets. Not -- as one would expect -- to pay bills or make payroll, but rather to retire loans and liens held by New College trustee Peter Gabel and his private Arlene Francis Foundation.
In fact, it seems that by squeezing every last drop of blood out of the school's assets, Gabel and his cronies on the New College board assured that nothing would be left for other creditors once it closed. Unfortunately, those creditors include the school's employees who haven't been paid since November.
Near as we can tell, the refinancing of New College properties in January -- just prior to Gabel's forced resignation as trustee -- was the last attempt by him and his pals to put this blood money beyond the reach of faculty and alumni considering class-action lawsuits against them.
Having now stripped the school to the bones through golden parachutes to friends and family, the only remedy left is to involve United States Trustees in undoing inappropriate asset transfers from the school to Gabel and his family foundation. From what we understand, that requires forcing New College into involuntary bankruptcy.
Things could start to get interesting.
In fact, it seems that by squeezing every last drop of blood out of the school's assets, Gabel and his cronies on the New College board assured that nothing would be left for other creditors once it closed. Unfortunately, those creditors include the school's employees who haven't been paid since November.
Near as we can tell, the refinancing of New College properties in January -- just prior to Gabel's forced resignation as trustee -- was the last attempt by him and his pals to put this blood money beyond the reach of faculty and alumni considering class-action lawsuits against them.
Having now stripped the school to the bones through golden parachutes to friends and family, the only remedy left is to involve United States Trustees in undoing inappropriate asset transfers from the school to Gabel and his family foundation. From what we understand, that requires forcing New College into involuntary bankruptcy.
Things could start to get interesting.
