Michigan State University will fund its unprecedented $500 million settlement with survivors of Larry Nassar’s sex abuse through proceeds from a bond offering, after the board of trustees unanimously approved the settlement and bond amount at a raucous meeting Friday morning.
The board also voted to retain interim President John Engler, despite recent calls for his resignation by two trustees and multiple state officials.
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Any recovered funds will go directly toward paying down the debt, the board said.
The school, a Midwest powerhouse with an enrollment of 50,000 students, said it won’t tap any state appropriations or use tuition funds for the settlement payout. It is in talks with its insurers, and has said it expects to recover at least some funds through them.
Any recovered funds will go directly toward paying down the debt, the board said at a packed meeting marked by shouts of “Shame on you, MSU” and calls for the interim president, John Engler, to resign.
It wasn’t clear how the school planned to cover the payments on the bond. School officials didn’t immediately respond to requests for comment.
An expanded version of this report appears on WSJ.com.
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