This blog is not the only entity asking interested questions about the finances of Harvest Prep, the subject of recent blog coverage, click here and here and also here.
The Star Tribune wrote a story in August, "Harvest Prep asked to reveal details of finances." (Hurry, click here before the STrib link goes dead or takes you to a website asking you to pay for old junk in their archive) Until the last few days, I confess that I didn't have a firm grasp on how massive these finances are. I mean, my word, we're talking about the BOND MARKET, here.
The bond market is not my forte. Give me a nice criminal complaint any old time, and I'll unscramble it and try to make some sense of it.
Having said that...
On December 1 of this year, it appears the City of Minneapolis--which holds Seed Academy bonds, LOTS OF THEM--gave notice that, as of January 1, 2013, the city was redeeming $125,000 worth of those bonds. The bonds matured in 2016 so, the way I read it, that's early.
So was this a routine, long ago planned cashing in of bonds THREE YEARS EARLY?
Or should this be looked upon with worry like an omen, as when rats leave a ship?
Click here to look over the document about the bond redemption for yourself.
ADDENDUM: I have learned that Minneapolis holds $5,950,000 in Series A bonds and $1,050,000 in Series 2006B bonds.
Here is more. Make of it what you will.
The Trustee gave notice2 on April 6, 2011 that, with the consent of the holders of a majority of the Bonds, it had entered into a Forbearance Agreement with Seed, Best, and Harvest on March 31, 2011, which has been amended to extend its life until June 30, 2013 (as so amended, the “Forbearance Agreement”). Under the Forbearance Agreement, Seed agreed that its financial consultant, Clifton Larson Allen LLC, would be permitted to participate in monthly conference calls with the holders of the Bonds who wish to participate in such a call, to hear a report on efforts being made to identify opportunities for efficiencies and cost savings in the operations of Seed, Harvest and Best with management and the financial consultant.
Hmmmm.
ReplyDeleteThis from a recent financial report.
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The Organization has a revenue bond agreement with the City of Minneapolis
for $7,000,000 which matures on January 1, 2026. The Series 2006A bonds
($5,950,000) have an effective interest rate starting at 3.75% and ending at 6.50%
at the January 2026 maturity. The Series 2006B bonds ($1,050,000) have an
effective interest rate starting at 7.00% and ending at 8.00% at the January 1,
2016 maturity. The Organization was in violation of its loan covenants associated
with this debt. Due to noncompliance with covenants associated with the bonds,
the Organization along with Harvest Preparatory Charter School, Inc. (Harvest)
and Best Academy, Inc. (Best) entered into a forbearance agreement. The
agreement requires additional reporting requirements, certain retained management
and that Harvest and Best pledge their rental payments made to Seed Daycare
to the trustee. The forbearance agreement is in effect through June 30, 2013
unless extended by the bond holders.
I am being told by an expert on the subject that THIS bond redemption is routine but (in summary) there is overall worry about the bond situation.
ReplyDeleteI fear that we will see the economic collapse of Harvest, SEED, etc. in the coming 3 years. The real estate fraud and the default on covenants should worry all who care about students and MPS. I hope that MPS, which has linked up so closely with this enterprise is looking at all the books - including what happens to HP students after they graduate with such high test scores. I hope that they have gone on to great success at the U of M, Howard, Harvard, Morris, Morehouse, etc. Then we should then model more Mpls and St. Paul schools on HP. But if not.
ReplyDeleteThere is no worry about anything at Harvest Prep. It's funny people use your low traffic crap-site in an attempt to drum up something that's not there. People will learn...
ReplyDeleteJust wait until the sex scandal with a minor is released.
I would look at all the friends in high places that this operation has.
ReplyDeleteI would look at all the foundations and charities which donate money and make interest free loans to this operation.
I would look at the Minneapolis School Board authorizing four new charter schools for this operation in the next ten years.
I would look at this operations receiving national recognition by the charter school industry as a model of success.
I would look at all the wealthy backers of the charter school industry all across the nation.
I would think all the above would be embarrassed if the bonds weren't paid.
If I owned those bonds I do not think I would be losing sleep about losing money. I think I would just help my fellow investors keep the heat on and make a little noise. $7 Million + interest is chump change for the friends of this operation. I'd be planning on getting paid (and in full) some way, some how. Whether or not the kids learn anything, I'd plan on getting paid.
They could sell another $30 million in bonds tomorrow if the City issued them. For all the reasons above. No matter what you or anyone else posts on blogs.
Please tell me what "sex scandal with a minor" you mean. I'm so interested to know what's being made up in your crazy little mind, troll.
ReplyDeleteAnd while you are at it why dont you give the poverty pimp Don Allen some more money and that prejudiced guy Al Flowers deserves more money too. if not them. give the rest to some other community THIEF.
ReplyDelete