Will there be cash for the 10% off paychecks? Sure ED has continued to send cash, "However, since the July 23 letter, the Company has received two disbursements of Title IV funds under the Operating Agreement totaling approximately $42 million, with the most recent disbursement received on August 6, 2014." But that sentence before is what has me a bit concerned, "The Company is not able to predict when or whether ED will be satisfied with the Company’s document production efforts or whether Title IV funds will be withheld by ED from the Company, and if withheld, how much would be withheld or what the duration of such withholding of Title IV funds might be." Then there is that recertification issue, "Pursuant to the Operating Agreement, if ED denies recertification of these campuses, the Company must provide each student at the affected campuses with the student’s choice of continuing such student’s program of study at the school or withdrawing from the school and receiving a Full Refund (as defined in the Operating Agreement)." Full refund for approximately 160 students? Is the required $30 million fund to refund students even funded? It might be alright if there was some assurance that some cash was available from some source, but rather than suggest there is the possibility of a plan I read, "There can be no assurance that the Company will be able to obtain any such additional needed liquidity on a timely basis, on terms acceptable to it, or at all." But don't worry about 10% reduced payroll, right? What else could go wrong? "Any withholding of Title IV funds by ED, or further restrictions on funding or operations by accrediting agencies, state agencies, or other funding sources, would only exacerbate the Company’s existing liquidity constraints." To all of those who suggested I have nothing to worry about, and ED is taking good care of us, could you explain?
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You nailed it. The 10% off was to allow to lengthen the operations as CCI tries to sell schools. Generally speaking, the employees are paying for the extension of operations. Quite honestly, at the look of things, they may have well let us keep the 10% because an additional 3 months will not make a difference. 10% off our paycheck for a few months makes a world of difference to all of us though.
Highlighting all the right things, asking all the right questions. We will not finish the term.....