To: All U.S. Employees
From: Jack Massimino, Chairman and CEO
Subject: Operating Agreement reached with Department of Education
After more than two intense weeks of discussions, we have signed a final operating agreement with the Department of Education (ED). The agreement establishes an orderly transition plan for our 107 campuses and online programs and will help our students complete their studies. ED has also provided for an immediate drawdown of Title IV funds for currently enrolled students and a mechanism for continued funding during the transition of our schools to qualified buyers.
As part of our fiscal 2015 strategic planning/budgeting process, we had decided to teach-out 12 Everest schools; these teach-outs are included in the agreement. We have notified campus presidents of the schools being taught out and planning is now underway for the gradual wind-down of these campuses. We will be able to publicly communicate the names of the teach-out schools shortly.
As we announced today, our remaining 85 U.S. schools have been put up for sale, and over the next six months we will work toward finding buyers and signing sales agreements. Outside of the agreement with ED, we will also begin a sales process for our Canadian schools.
As we move ahead, we will provide written notice to all students regarding our plans for their respective campuses or online programs.
Many of you have worked tirelessly to continue serving our students and to help make possible an orderly path forward. I have read many of your letters of support and I am deeply touched. Please accept my sincere thanks for rising to the occasion during these trying circumstances.
Read the press release: http://newsroom.cci.edu/releasedetail.cfm?ReleaseID=857808