NEW YORK, May 23 /PRNewswire-FirstCall/ --
Edison Schools Inc. (Nasdaq: EDSN) announced today that it that it is in full
compliance with all Company loan obligations to Merrill Lynch and School
Services LLC.
"This statement clarifies recent reports by both Bloomberg and Dow Jones
that the Company had defaulted on these loan agreements. As clearly disclosed
in the Company's most recent 10-Q, the Company received written waivers from
these lenders with respect to a particular financial covenant contained in the
agreements; therefore, the Company is not in default," said Chip Delaney,
Edison's Vice-Chairman for Business and Finance.
"Failure to report that the Company had received such waivers renders the
news reports incomplete at best," commented Chris Cerf, Edison's President and
Chief Operating Officer. "The Bloomberg story implies that the issue remains
unresolved and that the company omitted to disclose it appropriately. Both
inferences are flatly inaccurate," said Cerf.
Peter Lyons, spokesman for School Services LLC stated "We have no basis to
believe that Edison is in default of its obligations to School Services. Nor
do we expect that to change in the future."
Mr. Delaney confirmed that Merrill Lynch also is satisfied that Edison is
in compliance with its loan obligations.
About Edison
Founded in 1992, Edison partners with school districts and charter boards
to raise student achievement through its research-based school design, aligned
assessment systems, interactive professional development, integrated use of
technology, and other proven program features. Edison students are achieving
annual academic gains well above national norms. Edison Schools now serves
more than 110,000 public school students in more than 20 states through four
different business channels: (1) the management of schools for school
districts, (2) charter schools, (3) summer and after-school programs, and
(4) achievement management solutions for school systems. The company operates
149 full-year schools and 178 summer schools.
Between 1992 and 1995 and in ongoing efforts, Edison's team of leading
educators and scholars has conducted intensive research to develop its school
design and support systems. Edison opened its first four schools in August
1995 and has grown rapidly in every subsequent year. For more information,
please visit http://www.edisonschools.com.
Any statements in this press release and any other press release issued by
Edison on or about the date hereof about future expectations, plans and
prospects for Edison, including statements containing the words "believes,"
"anticipates," "plans," "expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from
those indicated by such forward-looking statements as a result of various
important factors, including the risk factors discussed in our most recent
annual report on form 10-K/A filed with the SEC. The forward-looking
statements included in this press release represent Edison's estimates as of
May 23, 2003. Edison anticipates that subsequent events and developments will
cause its estimates to change. While Edison may elect to update these
forward-looking statements at some point in the future, Edison specifically
disclaims any obligation to do so. These forward-looking statements should
not be relied upon as representing Edison's estimates or views as of any date
subsequent to May 23, 2003.
SOURCE Edison Schools Inc.
 back to top
Related links:
http://www.edisonschools.com
CONTACT:
Chris Scarlata, CFO, +1-212-419-1645, or Adam
Tucker, VP, Communications, +1-212-419-1602, both of Edison
Schools Inc.
|
