Anon from Colorado Springs wrote: The original Operating Agreement was signed by all involved parties (CCi, DOE, and all lenders to which we owe money). Then CCi couldn't quite meet the requirements of that agreement so they submitted a First Amendment to the Operating Agreement. All interested parties also signed this amendment, agreeing to the changes that were made. It specifically stated in that first amendment that there was to be NO second amendment; the interested parties did not want any more changes to the operating agreement and CCi better do what they agreed to do. IF CCi did file a second amendment they would be in default and all their Title IV would end. Well, no surprise, Jack Assamino decided to go ahead and file a second amendment anyway because he couldn't live up the agreements he made the other times. When that second amendment was filed (the 8K on the 19th) it did NOT have the signatures of all the lenders/banks. The filing stated that if CCi did not get the signatures by the deadline of the 25th, then they were in default. CCi did indeed get the lenders to agree to this second amendment as well. That's what the filing on the 26th was saying: all signatures were obtained, all partied were in agreement, so CCi is not in default and they can still get their Title IV. Make more sense?
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My sense is that we decided to apply funds to the DOE requirements that were previously earmarked for the lenders. We didn't have enough cash to do both. As such, the lenders had to agree to the arrangement. Robbing Peter to pay Paul, rearranging deck chairs on the Titanic......choose your favorite appropriate metaphor.
I think it was diverted, not averted. There will be more before the company ceases to exist in it's current form. And it just took attention away from everything else going on.
Of course there will be more. Duh.
I think many people didn't understand what was happening. BTW, the crisis was AVERTED, not diverted. Just for future reference because there will be more crisis to avert.
Who cares at this point. Another crisis diverted until the next one or the end. Why keep re posting it?
Excellent synopsis. Thanks for the explanation. I hope that it helps people here. We all came very close to closing on Thursday - the 26th, if we did not get all of those signatures. Since I'm an hourly employee, I thought is strange that my hours on Monday - Wednesday last week had been approved already. Normally, my manager will approve all of my hours for the week over the following weekend. I was told that he had been requested by upper management to approve all hours through Wednesday, 9.25. This is one of the first steps in being able to declare bankruptcy legally. This would have taken place on the 26th had the banks not signed the 2nd Amendment. The signing of the 2nd Amendment gave us all a reprieve - and a job to come to this morning. Now use all the time you have to getting another job.