Saturday, September 20, 2014
Fourth Tier Trash Heap Thomas Jefferson School of Law Defaults on $133 Million in Bonds
Truly Great News!: On September 16, 2014, Staci Zaretsky posted an epic ATL article, which was entitled “Troubled Law School Defaults On Its Bonds, May Be Forced To Cease Operations.” Look at this scintillating opening:
“While it’s true that things have been spiraling downwards for law schools since the Great Recession, it wasn’t until 2011 that things really got out of hand. That was when the very first class action lawsuit about deceptive employment statistics was filed against the Thomas Jefferson School of Law. Little did we know that it would prove to be a harbinger of doom for the school.
About a year ago, we brought our readers the sad news that TJSL had conducted faculty and staff layoffs in an effort to free up funds. Not only had it suffered a blow to its enrollment, but it was also struggling to pay off the $133 million debt it accumulated after opening its new campus building in 2011.
To make matters infinitely worse, in December 2013, Standard and Poor’s released news that it had downgraded the credit ratings of a slew of stand-alone law schools. TJSL was one of the downtrodden schools whose credit standing was downgraded to B+, junk bond status with a negative outlook.
Now, we’ve got news that could have disastrous effects for the law school. It seems that TJSL has defaulted on its bonds, and it may be unable to remain in operation due to its financial predicament…
Today, we received an Event Filing and Consent and Forbearance Agreement concerning TJSL’s bonds. Per the filing, TJSL defaulted on its bonds on June 26, 2014, by failing to make the required payments.” [Emphasis mine]
As you can see, the law school pigs believed that good times – for them, not the students – would never end. This is why the cockroaches engaged in a ridiculous spending spree. Check out this fancy law building the bastards purchased.
Third Mo$TTTT Impre$$ive Law School Building in the Country: Hell, as recently as August 5, 2014, the pile of raw sewage was thrilled to announce that “TJSL Ranks #3 of Most Impressive Law School Buildings by Best Choice Schools.” From the press release:
“Best Choice Schools, a site dedicated to providing relevant information about educational institutions, has included Thomas Jefferson School of Law among the 50 Most Impressive Law School Buildings in the World. Thomas Jefferson School of Law was ranked third and achieved the highest rank of any U.S. school.”
No one gives a damn whether the law building is seen as a jewel – if you can’t find a job after graduating from this fourth tier pile of excrement. The toilet spent a fortune on this project – and now the day of reckoning approaches.
Standard & Poor’s Wipes Its Ass With TJ$L: The Wall Street Journal provided a link to the Standard & Poor’s Ratings Services report noted above. On page 9 of this PDF, read the following:
“Thomas Jefferson School of Law, Calif. Countering the overall trend, Thomas Jefferson School of Law (B+/Negative) had expanded enrollment until a slight decline for fall 2013 and has historically generated positive operations on a full-accrual basis. However, operating surpluses have not boosted financial resources fast enough and, as a result, the law school has violated its balance sheet covenants for fiscal 2012 and fiscal 2013. Management does not anticipate meeting the financial covenants until 2018; violation of the covenants cannot result in an acceleration of the debt, however. We believe the law school's large amount of debt and very high debt service, which resulted from the construction of a new facility that the school put into service during 2011, are credit weaknesses. In our opinion, there is also enrollment risk given the declining number of law students nationally and recent weakness in headcount that will likely compress operating margins, particularly since the school has no track record of fundraising.” [Emphasis mine]
Yes, what a pre$TTTTigiou$ in$TTTTiTTTTuTTTTion, huh?!?! You’re welcome, bitches! You grew fat and happy on the corpses of young people. Now, you are reaping what you sowed, you vile rodents.
Other Coverage: Paul Caron published an entry labeled “Thomas Jefferson Law School Defaults on $133m of Junk Bonds, Hopes to Restructure Debt and Remain Open” – back on September 17, 2014. Read this gem:
“Thomas Jefferson's students have the lowest bar exam pass rate (50%) among California's 21 ABA-accredited law schools; the second-fewest full-time, long-term jobs as lawyers (29%) within nine months of graduation among California's 21 ABA-accredited law schools; and the most law school debt ($180,665) among the nation's 200 law schools. Thomas Jefferson's latest available Form 990 lists the Dean's total compensation as $528,430 and nine other faculty and [administrators] with total compensation in excess of $175,000.” [Emphasis mine]
For $ome rea$on, the filthy swine insist on HUGE, unjustified salaries – even as enrollment drops. But they care about the students, right?!?!
Conclusion: TTTThoma$ Jeffer$on Sewer of Law is on the ropes. Let’s put these pigs’ faces, snouts and asses in the dirt! Keep the heat on these bastards, and don’t allow them to recover. California has a monumentally GLUTTED lawyer job market. As Caron noted in his blog, this dung heap’s grads have the lowest bar passage rate of California’s 21 ABA-accredited diploma mills. How many thousands of young men and women have been FINANCIALLY RAPED by this commode?! Now, it is time for the cockroaches to burn to a crisp.
Posted by Nando at 5:43 AM