, Gloucester, MA

Latest Cape Ann News

March 12, 2013

Charter owes its creditors $135k

Two months after Gloucester’s charter school rang its final dismissal bell, the school still faces more than $100,000 of debt and owes $35,000 to lenders, mostly trustees who loaned money interest-free as the school teetered on financial ruin.

The state’s Department of Education had hoped officials would have wrapped up closing procedures and dusted the chalk off their hands by the end of February, but a hefty list of closing procedures has kept trustees busy and forced trustees to continue working to tie up loose ends, like paying off their debts.

“Members of the board have spent weeks researching options and preparing for the (asset) sale,” Trustee David Buchanan said in an email to the Times.

About $45,734 of the money Gloucester Community Arts Charter School owes is due to a legal team, Foley Hoag LLP, while another $11,175 to Central Source, a business management team that specializes in charter school management plans, according to a school invoice dated March 5 and promissory note records provided by the Board of Trustees.

Tony Blackman, the school’s former executive director, who stepped down in September in what he then called an attempt to save money in the school’s budget, could still collect about $17,605 the school owes him. That total includes about $8,438 in vacation pay and a month’s pay of about $9,167, according to the invoice.

Trustees assigned priority of their dig out of debt on first repaying the promissory notes, each promissory note clearly stated.

”Funds will be used to repay the loans as a priority above other creditors,” the promissory notes read.

The handful of promissory notes reflects contributions from the school’s trustees, totaling $20,000. And the charter school building’s landlord, Peter M. “Mick” Lafata, appears as the lender on one $15,000 promissory note. All of the six notes are listed as interest free loans that were used on an emergency basis to pay employee salaries and wages, and were expected to be repaid with state funds.

Text Only | Photo Reprints
Latest Cape Ann News

Pictures of the Week
Your news, your way
Comments Tracker
AP Video Network
Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong Obama Voices Concern About Casualties in Mideast Diplomacy Intensifies Amid Mounting Gaza Toll AP Exclusive: American Beaten in Israel Speaks Obama Protects Gay, Transgender Workers Raw: Gaza Rescuers Search Rubble for Survivors Raw: International Team Inspects MH17 Bodies Raw: 25 Family Members Killed in Gaza Airstrike US Teen Beaten in Mideast Talks About Ordeal 'Weird Al' Is Wowed by Album's Success