Any news on the court hearing yesterday? Wondering if EPF & Studio Enterprise now understand that a large investment will be required in separating the IT from DCEH (which has a "Transfer Service Agreement" with EPF & Studio for 15 years, by the way). It will be interesting to see if EPF & Studio invest anything into this endeavor (they have only collected fees, they have never put up any cash up to this point). If the judge transfers this to a bankruptcy court, the house of cards falls (and will fall very quickly).
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4zki is two or three steps behind the curve. Yes, a bankruptcy court can unravel the "deal" between DCEH and EPF/Studio. As for sources, please read the court filings as to what is alleged and what has been admitted (by both parties). Also, ask "why" EPF/Studio is fighting SO hard to keep this out of a bankruptcy court.
I don't know what "sources" the previous poster is referring too (nor do I 'assume' where the other posters are pulling their information from), but the court filings that are online and public should tell you a lot about the future of these schools, and that is the future is perilous.
4zki- You are a step behind. The comment referred to the 7 still open AI locations in Texas, Atlanta and Virginia Beach, which are attempting to survive under Studio’s ownership and avoid bankruptcy.
And by appointing a receiver DCEH has so far dodged bankruptcy.
"if the court felt that these assets were undervalued when transferred" Really? I thought consensuses was there was no cash left to grab. Whats the market value of bankruptcy? So who are the bad guys? It's everybody?
What would DCEH do with any assets?
Keep using the if and assume words and your saying nothing. No one knows.
Soon, right around the corner, not to far off, Don't pretend you know.
@2hea: The filings from the receiver state that $0 were paid for the transfer of South and Ai (all 7 schools).
Bankrupcy Courts have a massive amount of power to 'clawback' assets that were transferred without consideration and/or below market value. So yes, a bankrupcy court could clawback South & Ai from EPF/Studio if the court felt that these assests were undervalued when transfered (again, court filings state that EPF/Studio paid $0 for South & Ai).
I assume this is what the poster below is stating when it is stated "the whole thing goes down the drain". These are very well educated assumptions AND why EPF/Studio are trying very hard to keep this out of a bankruptcy court
David H. can you help clarify?!! Please! I trust your insight. Thanks in advance.
If there is truth to what you are saying, why don't you post your sources? Then, you declare your are assuming.
Why do you think bankruptcy court would or could declare that the whole thing goes down the drain?
Don't bother replying with assumptions.
Another one bites the dust.
Bingo! Get this to bankruptcy and stop the bleeding. It's OVER!
@zul: When a bankruptcy court looks at the deal (EPF/Studio paid "$0" to have 8 schools [South & 7 Ais] transferred) I would assume the court will clawback these assets and make them pay for the 8 schools (ie, not just taking ownership and then taking fees). Plus, Studio was trying to convert DCEH assets to their own (by attempting to transfer URLs that belong to DCEH). EPF/Studio are not appearing before the court with 'clean hands'. Once the court decides that this belongs in bankruptcy court the whole thing goes down the drain.
Or, all the saved schools may continue to move forward. Studio seems confident that they have the best plan moving forward. They say that the receiver is not needed in their plan.
Read the plans and comparison. To me, Studio is the obvious choice. Still, these decisions almost always come down to a political position or which party was more convincing to the courts.
AiLV is not a Studio school...
I hope all current AiLV employees and students are reading this very closely.
There was no hearing on April 11. All the Court did was grant an extension of time until the 11th so that the Receiver, Studio, South, and Art Institutes could come to further agreement about how the Pittsburgh IT assets will be separated. At this point the parties are making some serious allegations against one another. How this will all end up is unclear right now. No doubt the Court will make a decision as soon as it can.
All of the “saved” schools may close very soon. Studio Enterprise had planned on converting many AI employees to Studio employees. Once the judge ordered the hearing on April 11, all of those plans abruptly halted. Sounds and feels like Studio is very aware that the ‘cash grab’ will be coming to an end. I see at our school, people jumping ship and leaving (as if they know something is right around the corner). Others act as if everything is wonderful...EPF & Studio “saved our school and we should be thankful” is what you hear from these Cool-Aid drinkers! The end is not too far off in the distance, please understand that and make plans for your future.