UPDATE: This article was updated to include a statement and more context regarding Edkey’s payment deferment arrangement with lenders.

Arizona charter school Edkey, which operates K-12 schools in Maricopa, told bondholder that it deferred a scheduled interest payment due Feb. 1 to UMB Bank.

Previously the charter school system and the Kansas City-based lender mutually agreed to a “pause” in those payments as Edkey reshuffled its finances. However, securities documents filed with the MSRB today mark that original Feb. 1 payment deadline, now pushed back.

“The EdKey leadership team and board have been working closely with bondholders and regularly disclosing information to ensure communication is open, transparent and timely. The bond forbearance was extended from Feb 1 to April 30 on Friday, January 31.  Bond forbearance is akin to the deferment of payments on a traditional loan, where payments are postponed rather than missed,” said Lorna Romero Ferguson, a public relations liaison working for Edkey. “The extension of the forbearance agreement is a key element of EdKey’s negotiated plan with bondholders, and all parties involved were fully informed and supportive of this extension.”

Edkey is in dire straits. The charter school system was just sued in New York by lenders, had its bond rating lowered to ‘D’ and laid off 15% of its staff.  

This week, one of Edkey’s most vocal critics, Jim Hall filed complaints with the Arizona Attorney General’s Office and the U.S. Securities and Exchange Commission. 

In the identical complaints, Hall analyzed the figures presented to bondholders and state oversight groups and found a discrepancy between the numbers. In a Jan. 23 securities filing, Edkey reported enrolling 6,042 students across its 31 schools. To the Arizona Department of Education, Edkey reported 404 fewer students enrolled during the same time. 

State aid for each student is $8,500. The allegedly inflated numbers would amount to an extra $3.4 million.   

Edkey COO Dr. Yovhane Metcalfe said she had not seen the complaint.  

“We will fully cooperate with the Attorney General’s office if that time comes,” she told InMaricopa.   

Edkey has 17 schools across Arizona, with 3,600 K-8 students and 1,400 high school students. Some 700 of those students are enrolled at Maricopa’s Sequoia Pathway, Sequoia Pathway Secondary and Pathway Academy.