Things are happening behind the scenes to help the embattled charter school system EdKey right its financial situation. If the efforts succeed, students can continue attending Sequoia Pathway Academy in Maricopa.

UMB Bank, the trustee for more than $112 million in bonds issued for Edkey charter schools, said it will restart monthly interest payments to bondholders in October after nearly a year of suspension and at a time when Edkey is at a low point.

The Pima County Industrial Development Authority sold the bonds in 2016, 2019 and 2020 to help fund Edkey’s school facilities. In December, Edkey and its affiliates signed a forbearance agreement with trustees after falling behind on debt. The deal, later extended twice, pledged almost all school assets as collateral.

On Oct. 15, the trustee will pay $6.34 million in interest covering all the missed payments since December. Principal payments remain paused until Edkey repays the support it received under the agreement. The recorded date for the interest payment is Oct. 10.

Trustees and bondholders are working on a new agreement for fiscal year 2026, expected to last through Jan. 30. Edkey also plans to hold a public investor call in October to provide updates.

What this means in plain terms

• For parents and teachers: The move today doesn’t mean Edkey’s finances are “fixed.” It means bondholders and trustees are trying to keep the debt structure from collapsing, which buys the school system time. Daily school operations are still under state scrutiny.

• For investors: Bondholders are getting interest again, which suggests cooperation between Edkey and its lenders. But the pause on principal shows the network isn’t healthy enough to cover full debt service.

• For the state: The financial intervention remains. If Edkey continues to blow past budgets, the Arizona State Board for Charter Schools could tighten oversight or even move toward revocation, regardless of what’s happening with bondholders.