Thread regarding ITT Educational Services Inc. layoffs

Intervention into ITT's bankruptcy

Quick update:

The intervention into ITT's bankruptcy started out moving quickly, but it has slowed down. Currently the attorneys are negotiating a deal with the Trustee that would stipulate that former students are creditors and allow the lawyers to dive into ITT documents and probably depose (i.e. interview) ITT execs. It would not directly affect PEAKS/CUSO loans or federal loans, but it would lay the groundwork for getting them cancelled. That might require some more creativity on our part.

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Post ID: @MRZ9FtQ

3 replies (most recent on top)

Thanks for link to fascinating Indiana Business Journal article (in previous reply). Article says the bankruptcy trustee is filing a lawsuit to hold ITT-Tech Board of Directors accountable. Failure of ITT Board to act in 2014, when ITT officers were driving company over the cliff, is one of greatest mysteries in this bankruptcy story.

The Board's re-hiring of CEO Modany, in early 2015, marked the point when ITT company left the cliff edge and began its freefall into oblivion. I used to teach physics at ITT-Tech, and think this projectile motion metaphor fits well. Along with thousands of others, I witnessed the inevitable crash and burn in September 2016, when ITT Tech hit bottom. A lot of people at the campus level and in the media were crying out warnings, overwhelmed by a sinking feeling of impending catastrophe, while the board of directors did nothing.

Lets hope the trustee has success in bringing a lawsuit against the officers themselves. And please, someone, write the book telling the inside story! Maybe an officer will write this story, and be forced to donate their profits.

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Post ID: @MRZ9FtQ-1uzll

https://www.ibj.com/articles/64616-itt-trustee-blasts-firms-former-directors-seeks-50m?lipi=urn%3Ali%3Apage%3Ad_flagship3_feed%3BN3g0RQKkQ7ui5gZvDPZfpw%3D%3D

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Post ID: @MRZ9FtQ-1tgxn

Any updates ?

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Post ID: @MRZ9FtQ-Orxg

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