Head of Han Academy admits mismanagement over bonds blunder

The head of the private school Han Academy admitted on Wednesday mismanagement in the school after it was accused of failing to repay contribution bonds to parents as promised.

Speaking to the press outside the school campus today, School Supervisor Xu Li said the school’s poor management had led to outstanding debts.

She promised that the school would not close down and revealed that the school had proposed a “5-year extension plan” at a meeting with debenture holders on Monday, awaiting their acknowledgment.

Tsui noted that a number of social factors such as the pandemic have led to a decrease in student enrollment, while operating costs have risen significantly, resulting in financial difficulties for the school.

The school, therefore, is unable to allow parents to redeem their school debentures as usual after 2022, she said.

Tsui reassured reporters that the school would not shut down and would actively communicate with parents to seek resolutions as early as possible.

When asked about the possible resolutions, Tsui said the school had proposed a “5-year extension plan” for parents to redeem their debentures five years later.

She said the attending parents had agreed during the meeting that it would be detrimental to all parties involved if the school were to wind up, and were willing to give the proposal some thought.

The school is now awaiting written approval from the debenture holders to make the proposal legally effective, said Tsui, who stopped short in revealing the number of parents attending the meeting and those who agreed with the plan.