In a 12-hour negotiation Friday among the University of Wisconsin System, banks owed several millions of dollars and UW-Oshkosh's private foundation, the parties reached a settlement and pledged to "renew" their strained relationship.

The sum may still rest on taxpayers' shoulders.

The $6.3 million agreement came late Friday before the holiday weekend, in the wake of several rulings from U.S. Bankruptcy Judge Susan Kelley in favor of the foundation and an appeal from the UW System.

A federal district judge previously allowed the UWO Foundation and UW System to enter mediation under the discretion of U.S. Magistrate Judge David Jones.

The settlement comes mere weeks before state leadership changes hands from Gov. Scott Walker to Gov.-elect Tony Evers, who ran prominently on education issues and who currently serves as the state superintendent of public instruction. Through that role, Evers also spent nearly a decade on the UW System Board of Regents.

It also comes more than a year after the foundation filed for Chapter 11 bankruptcy protection, embroiling itself and the university system in scandal over how millions of dollars from UW-Oshkosh were moving to the foundation under former university leaders.

Read more in the Oshkosh Post Crescent.