There are basically two options: Deal for more life or no deal and bankruptcy. Finding $100M for free is likely not going to happen. Possibly some capital could be garnered from selling assets, but that isn't going to happen overnight The "Heald Plan" needs to be executed right away, but not likely going to happen soon enough. The so-called "second amendment" jacked up the cost of capital, and that was only done to meet the June 27 payroll. Every day with no deal the likelihood of bankruptcy increases. Sure the ~$5M a day will start rolling in soon, but CCi will never be able to recover from the "Forever 21" day delay.
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The product isn't the problem. The faculty and curriculum are good. The problem is that we never have enough students who can do the work or who will do the work.
This is not ED's fault. This is about CCi providing a substandard product.
Anonymous17555 - you are 100% correct. My thought is that the ED didn't have enough to outright kill CCI and that is why they are going after ITT harder than before.
I agree that CCi should be able to survive a minimum of 21 days with either cash in the bank or access to credit. At one time CCi had over $200M in the bank... Now about $0 in the bank and maxed out all credit resources. What causes that to happen?
CCi is not meant to recover from it. This is ED playing hardball. They have already decided that CCi will be no more and are making an example of it. They know that it's too risky for the usual for profit friendly pols to come out in support of CCi. If the company doesn't make payroll, it won't be seen as a result of government bullying. It will be spun as a shady company who collected billions in tax dollars for expensive, worthless degrees and spent it as soon as they got it. To most people, a company should be able to stay in business with a 21-day delay in getting payments for its services.