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When St. Catharine College announced this month that it would be shutting down, officials of the small Roman Catholic college in Kentucky said that employees would be paid through July 31. Now it turns out employees will only be paid through June 30. For some faculty employees whose duties are 10 months a year but who are paid over 12 months, that means that they won't be paid for some work they performed.
Cindy Gnadinger, president of the college, said that a bank acting as a trustee for bondholders refused to allow the payments. "The college explained to the bond trustee that some faculty members were entitled to these funds, as they had already completed the work," she said via email. "Unfortunately, the bond trustee explained it viewed faculty who needed to be paid for the academic year as unsecured creditors, and they could not be paid from the bondholders’ collateral."
