UPDATE: The Rt. Rev. Peter J. Lee named interim Dean – see below
The General Theological Seminary has announced that they have reached an agreement with Manufacturers and Traders Bank (M&T Bank) which will give the seminary breathing room on their debts:
On July 1 The General Theological Seminary (GTS) reached agreement in principle with its chief lending institution, Manufacturers and Traders Trust Company (M&T Bank) on terms for a $5.3 million short term loan that will provide working capital for the upcoming school year, the Rev. Lang Lowrey, GTS Interim President, announced in a recent letter to trustees. While subject to definitive agreements and final approval by both institutions, the plan provides General with a $5.3 million line of credit on which it can draw for operating expenses until the Seminary proceeds as planned with the sale of four residential units in the building known as Chelsea 2,3,4. The loan will be repaid from the proceeds of the sale which could take up to a year. At a special meeting in March, 2010 Trustees were made aware of an impending cash shortfall that could affect Seminary operations as early as the fall of this year. At their meeting in May, 2010 the Board approved the sale of up to four apartments in Chelsea 2,3,4. Since the building was renovated six years ago, three of the four apartments to be sold have been leased to outside tenants.
“With the closing of this short-term loan the imminent financial crisis that GTS faced has been temporarily eased, thanks to the good work of Board member Sandra Johnson, Executive Vice President Maureen Burnley, and Associate Vice President Frank DiMaiuta, we have bought some breathing room,” wrote President Lowrey to trustees. “Moreover, after we complete the very complex sale of the Chelsea units we will be required to retire the $5.3 million short term loan. The remaining proceeds will be used to further reduce the Seminary’s debt,” added Lowrey. The Seminary’s Interim President praised M&T Bank officials for their cooperation and willingness to work with GTS. “Now we need to develop a plan for further financial restructuring, including reducing the Seminary’s significant debt.”
GTS announces the Rt. Rev. Peter J. Lee has been named interim dean:
The Rev. Lang Lowrey, Interim President of the General Theological Seminary (GTS) announced today the appointment of the Rt. Rev. Peter James Lee, as Interim Dean of GTS, the Episcopal Church’s oldest theological seminary. The former Bishop of Virginia and one of the Church’s longest-serving bishops, Bishop Lee currently serves San Francisco’s Grace Cathedral as Interim Dean.