Monroe Capital: Seeks Involuntary Bankruptcy Of Portfolio Company
We are re-printing a just published article from the BDC Credit Reporter about one of Monroe Capital’s (MRCC) under-performing portfolio companies: Education Corporation of America (ECA). For those of you following the controversial for-profit education space, ECA was one of the key players, with 75 campuses nationwide and 20,000 students enrolled. In 2018, the company lost its accreditation and many of its trade and vocational schools closed. Since 2015, MRCC has been a lender and investor in ECA. However, for the past year its debt has been on non-accrual, and no income has been accrued. The BDC did double down in 2019 and acquired one of the schools that ECA owned in a new transaction. Now, MRCC and other creditors are asking the bankruptcy courts to force some sort of corporate resolution at ECA. Both the latest developments and some historical perspective are included in the post below:
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