A Hedge Fund, a Bond Default and a College’s Fight to Survive
- Troubled dorm project could trigger accelerated debt payments
- Historically black college is latest facing fiscal troubles
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The fate of a Florida college founded by a black civil rights activist may be in the hands of a California hedge fund.
That’s because Lapis Advisers, a distressed debt investor, is the biggest single holder of about $17 million of bonds sold by Bethune-Cookman University, a 115-year-old school in Daytona Beach contending with mounting losses, declining enrollment and a troubled dormitory project whose soaring costs led to a court fight over allegations of fraud.