ANTIOCH COLLEGE CONTINUATION CORPORATION

For Immediate Release

With Time Running Out, Major Donors and Educational Leaders Urge Reforming of University Board As Only Viable Solution

Yellow Springs, Ohio—March 30, 2008–Antioch University has forfeited an agreement to create an independent Antioch College by dragging out negotiations in an effort to profit from the College’s current difficulties, a group of major donors and educational leaders announced today.

“The issue is not about money – it’s about time,” said Eric Bates, co-chair of the Antioch College Continuation Corporation, which was formed to negotiate independence for the historic liberal arts institution. “As a result of the University’s repeated foot dragging it would now be extremely difficult, if not impossible, to receive the necessary regulatory approvals to continue operating the College next year as a separate entity. Through its needless delays, the University has squandered a historic opportunity and created a self-fulfilling prophecy.”

The ACCC’s final offer, Bates added, is no longer on the table. “The University would like everyone to believe that there are ‘remaining financial differences’ with the ACCC that can be broached with the help of outside parties,” he said. “In fact, we set realistic deadlines for the negotiations based on outside, expert counsel on what it would take to keep the College open, without disruption to students, faculty and staff. The University rejected our best and final offer after being given a clear and unequivocal deadline. For their negotiating team to pretend otherwise is simply disingenuous.”

David Goodman, a director of the ACCC who has negotiated dozens of mergers and acquisitions, said the University has misrepresented the reasons that negotiations failed. “This was never about security for the ACCC’s payment,” Goodman said. “We were fully prepared to provide the University with not one, but two forms of security: a mortgage on the campus, and a provision that the College and its assets would revert to the University if the ACCC were unable to continue operations. The ACCC’s offer was both financially reasonable and legally enforceable, but the University made clear that they would not accept the offer – even if their creditors were satisfied with the agreement.”

The issue of security, the ACCC added, is simply the latest in a series of obstacles that the University has invented to impede negotiations. In talks, the University’s negotiating team spoke of its desire to “leverage the College’s assets” and made clear that it did not want to share ownership of WYSO because it wants to explore the possibility of selling the public radio station. “At one point, nearly an entire month was lost because the University continued to demand that the ACCC pay $54 million for the College’s assets,” Bates said. “Under this absurd and outrageous demand, the College would have been required to ‘buy’ its own endowment from the University, at a cost of $22 million. Rather than seeking to find a solution that would benefit all parties involved, the University chose instead to engage in profiteering that prevented a timely and mutual resolution.”

While the University chose to forfeit the ACCC’s offer of $12.2 million for the College, the group emphasized that there is still one alternative that would enable the College to continue operating next year. More than a month ago, the ACCC offered to make an immediate contribution of $10 million in return for ten seats on the nineteen-member University Board of Trustees. The offer stands in stark contrast to the dismally low contributions by the current board, which reportedly total less than $25,000 in the current fiscal year.

The ACCC noted that it has yet to hear a response to its “10-10 plan,” which it is still prepared to discuss. “This is the only remaining arrangement that can enable the College to continue operating next year while creating a truly philanthropic board for the University,” Bates said. “This is not a hostile takeover – it is a remarkably generous and well-intentioned offer by an experienced and supportive group of alumni, six of whom are former University trustees. We remain mystified as to why the board has not acted on this win-win solution that could be enacted within a matter of hours.”

The ACCC said it would welcome the involvement of any outside parties who could persuade the University to take immediate advantage of this simple and effective solution. “It is the only offer still on the table,” said Frances Degen Horowitz, co-chair of the group and president emerita of the Graduate Center of the City University of New York. “The best solution at this point is for the University to accept the 10-10 plan and immediately create a philanthropic board of trustees that will provide the leadership and stability necessary for both the College and all the units of the University to prosper.”

For additional information on the Antioch College Alumni Association and the Antioch College Continuation Corporation: antiochians.org.

Last Modified : April 1st, 2008 Filed under : ACCC, announcements, news Navigate : Previous post / Next post