Creditors Trying to Block Lambuth Sale
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Officials with Radian Asset Assurance, the largest creditor for the now defunct Lambuth University is attempting to stop, or slow the sale and lease of the buildings and campus of the former Methodist-affiliated school. Radian has filed an objection to the motion that would allow Lambuth’s board of trustees to lease the campus to the state board of regents. The insurance carrier for the Lambuth bonds claims the lease is not in the best interest of Lambuth and its creditors and that Radian is not adequately protected for payment of debt that is owed. Radian said it is owed $4.9 million on the principal of the bonds and claims it has not received and payments since 2009. A hearing on the motion and filings in the case will be held in bankruptcy court, Thursday. Three of the four stakeholders trying to buy the campus have already approved $6 million to purchase the campus. County commissioners are scheduled to vote on their contribution, Thursday.
