USM seeking moratorium on payment, to mortgage properties


POND ISLAND–University of St. Martin (USM) is speaking to an attorney on the possibilities of putting a moratorium in place on the payment of its various creditors and is looking into taking a mortgage on its properties.

USM Vice President Wycliffe Smith told The Daily Herald on Tuesday that the goal of the moratorium is for USM to be able to pay its staff only and put a temporary stop on payment of providers who offer services to USM such as utilities and internet etc. The intention is to put the moratorium in place as early as December.

Smith also provided this information to Members of Parliament (MPs) during a meeting of the Central Committee of Parliament on Tuesday.


He told MPs that since USM has not received any word that it is possible to rescue the institution, USM “had to go over to its second option” and the university is currently speaking to a lawyer for advice on filing for a moratorium. “This would require that the staff would need to be paid throughout the period of the moratorium and we have asked the Endowment Foundation (of USM), if they can mortgage the properties of USM so that we can get a loan to pay off all that we need to do and once we do that then we would really have to close the doors of USM,” Smith told MPs during the meeting (read more in Wednesday’s issue of The Daily Herald). 

Source: The Daily Herald