CCI will end up filing Ch 7 BK and go out of business. All of the nonsense talk about selling off campuses and "teach out" is just that being NONSENSE. No one will BUY CCI campuses and it should be pointed out that CCI actually PAYS MONEY to people that take campuses off their hands.
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CCi has been paying to get rid of the trash, but now it must sell something of value for cash. In fact, it is my opinion that the only reason CCi has been refusing to 'sell' campuses is because of the cash. Instead of taking the charge and paying the buyer, CCi would rather keep the garbage in the garage. Sure it stinks and brings the value of the whole place down, but you need not pay cash to get rid of it.
Another reality check. This isn't the old days when any "Tom, Dick and Harry" could buy a college with the accreditation attached. The new purchaser has to go through significant hoops to transfer the accreditation. CCI won't sell any of its campuses with the best proof that the "sale" of Everest in Northern California was a result of CCI PAYING the purchaser $1.5 million to take it. Not to mention all of the unresolved CCI liabilities that come along with the purchase.
"Even if a college has negative cash flow, taking on the debt, writing it off, and then depreciating capital for infrastructure makes the colleges valuable." You are describing everything about CCi. Why has the stock price gone down?
Capital markets and private equity work counter to what we think would be logical. If a group like EDMC could add 10,000 students with s simple deal, they would do it instantly. That is where the value in the better COCO brands lies. Even if a college has negative cash flow, taking on the debt, writing it off, and then depreciating capital for infrastructure makes the colleges valuable. I get that this makes no sense to those outside of finance, but these better brands will be sold. That is the reason for the hold release. It keeps the colleges operating, not for students as they say, but for continuity during a transition. I imagine that this, not some "we will comply..." discussion, was what went on in DC over the weekend.
Chapter 7 will allow CCi to dump schools like Portland Everest which just signed a new lease for "a new era."
There isn't any buyers in the works. "Put up or shut up". Not directed to you personally but there isn't any.
"No one will buy CCI Campuses" ummm yes they will, as there are already buyers in the works.
It makes sense. If you file Chapter 7 then you can get around the "teach out", etc. rules. The campuses won't stay open if CCI doesn't have money. I didn't go to Everest but your response implies that you might have.
You're not making sense. Even if CCI were to file for Chapter 7 they are still selling off assets and there are already buyers in the wings. If campuses aren't performing they will keep them open until their students can finish their credentials. How is that nonsense? It's not that hard to understand. Did you go to Everest? hmmmyeah you must've went to Everest.