Fordham Wants Out of Agreement With Online Education Firm 2U (1)

Fordham University urged a bankruptcy court to find that online education giant 2U Inc. breached a years-long student field placement agreement and can’t continue the arrangement as proposed in its reorganization plan.

2U’s plan it reached with creditors in July would cut its $945 million long-term debt by more than 50% and allow 2U to extend the maturity date of its loans to over two years. The deal still has to be reviewed by a bankruptcy judge.

Fordham objected to 2U’s plan documents, saying the company “committed material breach” under a June 2017 agreement that the education platform can’t cure, ...