Financial woes are mounting for Aequitas, known for its student loan debt investments.
Aequitas Capital Management told clients this week that it won’t be able to pay back their ‘private note’investments for an indefinite period of time because it’s having financial problems.
Aequitas is struggling through severe ‘liquidity challenges,’ it admitted in the Feb. 2 letter, obtained by The Oregonian/OregonLive. Aequitas management vowed in the letter that it wouldn’t go out of business and offered the first official company version of the recent turbulence.
It’s clear that if Aequitas does manage to survive, it will be a radically smaller operation.
(READ MORE: Oregon Live)
Aequitas announced layoffs to about 102 of the 125 overall company jobs, according to Oregon Live.