Based on latest financial disclosure Corinthian Colleges Inc has Probability Of Bankruptcy of 48.28%. This is 26.99% higher than that of the Services sector, and 8.37% higher than that of Education and Training Services industry, The Probability Of Bankruptcy for all stocks is 22.32% lower than the firm.
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Wells Fargo, Shah Capital, and the other equity holders cannot force a bankruptcy, at least as equity holders, and in fact, would like to avoid such. It's the creditors who can force a bankruptcy, if CCi cannot pay its debts.
It's mostly up to Wells Fargo, Shah Capital, and a few other investors. All of them will ask for major cost cutting (e.g. reducing labor costs)or some way to generate more revenue (does CCi own anything that can be sold?)....http://finance.yahoo.com/q/mh?s=COCO+Major+Holders
As cash approaches zero, the likelihood of bankruptcy increases. Considering CCi has "breached its covenants" on it debt, but obtained waivers, I highly doubt that the credit markets will view the risk as low. Additionally CCi has already stated that it expects to breach another covenant of its debt when the Department of Education Financial Responsibility score is released. On top of all that, CCi's revenues are falling fast. How long can the current trend last? Will the current trend reverse before bankruptcy is necessary? Will creditors continue to provide waivers? Will creditors continue to lend CCi more money? As long as creditors are willing to provide waivers and lend more, CCi will never go bankrupt.