Charter Schools Financier Blames Bankruptcy on Spat With Backer

A major financier of US charter schools filed bankruptcy, blaming pandemic-era subsidies that reduced demand for its services and a dispute with a top stockholder, New York investment firm Orthogon Partners Investment Management.

Charter School Capital has provided funding to about one in eight of the 8,000 charter schools in the US, the company said in court papers filed Monday. The company said its struggles go back to 2022 because public schools, including charter schools, accessed federal cash in response to the Covid-19 pandemic.

Before the pandemic, CSC did $300 million a year in business through its Money To ...