UW considers settling with UW-Oshkosh foundation creditors
OSHKOSH, Wis. (AP) -- -
OSHKOSH, Wis. (AP) -- University of Wisconsin System officials confirm the state is considering a settlement with the creditors of financially-troubled UW-Oshkosh Foundation.
The Journal Sentinel reports the private foundation doesn't have enough cash to cover $14.5 million in debt. Regent Michael Grebe says a potential agreement would protect UW System assets if the foundation can't pay back its loans. Sen. Steve Nass says use of taxpayer money would amount to a bailout of the foundation's debts.
The Department of Justice is negotiating the settlement on behalf of the UW System and Board of Regents.
A UW spokeswoman says a settlement with the foundation would not affect the system's lawsuit against former top officials at UW-Oshkosh which alleges they illegally transferred $11 million from the campus to the foundation.