Riverside Preparatory Academy has defaulted on $48.5 million in bond debt earlier this month.
The academy failed to make a principal payment due at the start of this month and drew on a debt service reserve fund to make a $1.22 million interest payment, according to The Bond Buyer.
The revenue refunding bonds were issued in 2017 by the Gainesville and Hall County Development Authority.
“Riverside Prep is working proactively with bondholders and all stakeholders to ensure our important mission continues without interruption,” Mitch Clarke, director of marketing at Riverside told The Bond Buyer. “With federal securities laws in mind, it is imperative that all stakeholders receive information at the same time. Therefore, all communications to the market will be posted on EMMA.”
The bonds are secured by a first lien on the academy’s campus.