Joey, contemptuous of his father, refuses to go. Joey's father, New Jersey mob boss Albert Trotta, arranges for Joey to be released. They won't allow Billy to return, but with Parker's encouragement, he escapes and rejoins the students just in time to be counted, preventing the killing of Gould and four students in response. The students, under Billy's leadership, use their expertise in skirting authority to collect tactical information about the occupying forces, which Billy covertly brings to the authorities on the outside. Robert Gould, demanding his father's release in exchange for the hostages and institutes hourly headcounts. He releases the school faculty except for the cooks and the headmaster, Dr. Luis warns the authorities he will set off the explosives should they attack the school. Thorpe arms the explosives with a detonator wired to a remote control gadget Luis tapes to the back of his hand. The State Police, FBI and US Army are called in, keeping their distance to avoid provoking the terrorists. Underestimating the threat, the local Sheriff attempts to intervene but is repelled by heavy weapons fire. With Phil nowhere to be found but with the sons of numerous influential individuals in his grasp, Luis takes the entire school hostage. They set up lookout posts with heavy firearms and rig the campus with C-3 explosives.
Unaware of this, Luis Cali and his men invade the school to capture Donoghue, killing a campus police officer and a faculty member who intervenes. Phil's father is the Federal Judge presiding over Enrique Cali's trial, so the entire family is taken to a safe location as a precaution. A group of pranksters led by Billy Tepper that includes Billy's best friend Joey Trotta, Hank Giles, Ricardo Montoya, Jonathan Bradberry, and Phil Donoghue are carefully watched over by their teachers and the stern but well-meaning Dean Parker.
In the United States, the Regis High School is a prep school for teenage boys with wealthy and influential parents, many of whom have been expelled from other schools. They escape by helicopter, and with the weapons and logistics assistance of Luis's second-in-command, an American named Jack Thorpe, they enter the U.S. He demands the release of his drug kingpin father, Enrique Cali, only to learn that his father has already been extradited to the United States to stand trial. In Barranquilla, Colombia, terrorist Luis Cali has taken over the Palace of Justice with a team of mercenaries.