Filing Alert: Grow Schools Chapter 11
Grow Schools Files Chapter 11 in District of Delaware
Charter School Capital, Inc. (dba Grow Schools), a Beaverton, OR-based provider of financing and support services to charter schools, filed for Chapter 11 protection on Jun. 8 in the U.S. Bankruptcy Court for the District of Delaware.
The filing follows a two-year liquidity squeeze driven by a steep decline in the company's “Money to Run Your School” receivables business (approximately $32.6 million financed in 2024 versus roughly $300 million pre-COVID), higher interest rates and property-carrying costs that stalled real estate exits, and a $2.9 million arbitration award entered on May 22, 2025, in favor of preferred shareholder Orthogon⁽¹⁾.
The company states that the Chapter 11 filing will allow it to pursue an expedited §363 going-concern sale. It has retained Rock Creek Advisors as its investment banker and is negotiating stalking-horse terms with a strategic buyer that submitted a prepetition term sheet.
The company reports $10 million to $50 million in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-11016.
⁽¹⁾ Orthogon Charter Special Opportunities, LLP, Orthogon Charter Special Opportunities II, LP, and Orthogon Charter Special Opportunities III, LLC (collectively “Orthogon”).
Top Unsecured Claims
Key Parties
Bankruptcy Co-Counsel:
- Aaron H. Stulman
- Potter Anderson & Corroon LLP
- Email: astulman@potteranderson.com
Bankruptcy Co-Counsel:
- Goodwin Procter LLP
Signatories:
- Stuart Ellis – Chief Executive Officer
Claims Agent:
Equity Security Holders:
- Orthogon (various entities) – 52.1% Equity Interest
- Stuart Ellis – 16.8% Equity Interest
- Bradley W. Coburn – 14.6% Equity Interest
- Other Minority Holders – 16.5% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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