www.thelayoff.com/corinthian-colleges/post/5127757998587904
14 replies (most recent on top)
No Pay= No Class, No Grades entering final week. This is the product. We will know next Friday. Anything posted on roster or grade book would be fraudulent and reported to authorities, prediction is other instructors would follow suit as well. Hopefully this is all rumor mill about no payday and not totally based on fact. It would be in the best interest of the company to make payday. It is believed they will. There is not enough faith to work for free awaiting government payments.
@13110- Unless you have something better, I'd keep going in. All you lose is some of your time, and you may get paid for some of it in the future.
So should we not continue to go to work?? I don't work for free and God first, I will make sure I get paid for what I did work. Jake have some integrity,please!
Also CCi cannot fire the "going concern" shot unless it is factual. Dahn will be happy to know: It's jail time for firing those kinds of shots without being legitimate.
Anonymous12998- You don't understand GAAP. The day the cash comes in has nothing to do with net worth, for example.
I don't even know how they can justify another loan when they recently "breached the covenants" of their current debt. Also in that "First Amendment" it was expected that CCi would reduce reliance on credit, not increase reliance on it. Sure this might have been an unexpected event. Well, it was expected, but CCi probably didn't think it would happen. In any event, should this company increase its level of debt when it cannot stay within the terms of its current debt? Also management has already indicated that it will "breach the covenants" again on June 30, and that was before the ED action.
Cash on hand is a floting number depending on the day of the week. Yes, it may not fluctuate a lot but there are times when it is up and down multi millions of dollars. Prime examples are if you did a Net Worth the day after bills were paid or did a Net Worth the day you were paid (or in this case, when students/federal payments are received)
Not saying this is positive news just saying depending on the day, this not the true tell sign. Still beleive the CCi is tempting the had of gov't saying if you do not put back the 3 day funds, we will shut the doors and displace 100K students and employees. Something to think about.
I have read the reports and data. CCI even stated with out a bridge loan, they can not paid all the bills for 21+ days. They are working with a broken shoe-string.
ExHeald- The cash on March 31, 2014 is public data. Also the number of campuses, which is over 100, is public data. Level of cash source: http://www.sec.gov/Archives/edgar/data/1066134/000110465914037670/a14-9787_110q.htm
12988 - Let's just say you are correct, and they have $250,000 on hand per campus. The campus I worked at, that amount would not cover payroll. Bills, rent, lights, etc. Something has to give and not get paid.
What we do know: The company has said it does not have sufficient cash to operate as a "going concern." Unless it finds some quick cash, it's game over.
June 30, 2013, CCi had about $47 million in cash. March 31, 2014 CCi had about $28 million in cash. That's a decrease of about $19 million, or a reduction (UNFAVORABLE) of about $2 million per month. So CCi is burning through about $2 million in cash per month, and they are getting very close to $0. So what makes you think they have much cash on hand today? Alternatively, how do we know that CCi didn't use most of its cash last week to meet payroll? I consider it to be very likely that CCi used almost all of its available cash to meet payroll last week, just after receiving the letter from ED the day before. It's no wonder we were discussing the paychecks last week. ED probably let them know the letter was on the way on Wednesday. My guess is that it was a very difficult decision to use the last of the cash to meet payroll...
Today how much cash on hand does CCi have? As of March 31, CCi only had $28 Million total cash. That's about $250,000 per campus.
With cash on hand, they will have more bills than money. It will be up to CCI what bills they float. Maybe payroll, maybe not.