School Dist. Withholds Edison Money
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PHILADELPHIA (AP) _ The Philadelphia School District has withheld the first $3 million paycheck for Edison Schools Inc., saying the company has not yet produced required financial documents.
Schools Chief Executive Officer Paul G. Vallas said Edison has to file financial statements for the fiscal year that ended June 30 or a legal agreement allowing the district to keep supplies the private company is using to manage 20 city schools.
Vallas said he has these agreements from the six other private managers of city schools to protect supplies if a manager quits or goes out of business.
The district filed a lien with the Delaware Secretary of State on Friday on all of the company’s assets in Philadelphia schools. Edison is registered as a corporation in Delaware.
``Assuming that Edison went under, we would want to protect school property from creditors,″ Vallas said.
Edison spokesman Adam Tucker said the company is late providing the paperwork. He said the lien was a ``stopgap″ for the district until Edison submits the financial information. He would not say when that would be.
Edison Schools shares declined 1 cent to close Wednesday at 30 cents each on the Nasdaq Stock Market.