http://blogs.wsj.com/bankruptcy/2014/08/20/no-safety-net-for-employees-in-bryman-college-shutdown/
8 replies (most recent on top)
Omg they had to pay someone to take those crappy schools. You mean they cant even give them away. Let alone try qnd sell them. How in the he$$ are they going to sell annything. They wer probably yhinking they could recoup some with the support costs for Socle but that didnt happen.
Anonymous29517- It means CCi needs a lot of cash to entice a "buyer" to take over.
Bottom line is these schools were not sold, they were given away with $2.3 M and now there closed??. What does this mean for the existing schools that CCi is trying to sell?
29498- Career services has all the tips, and spectacular placement rates.
Agreed we need to get the F@#ck out of here. Let's help each other find jobs and quit all of this silly bashing and negativity on this site. We need to get out as soon as we can. How about posting something relevant to jobs that are available or interviewing tips.
The documents likely vastly underestimate the amount of employee claims, as the majority of the workers are listed as being owed nothing. No employees received a final paycheck, several former employees told Bankruptcy Beat.
On Monday, the company requested that its bankruptcy case be converted to a Chapter 7 liquidation, which would put a trustee in charge of winding down what remains of the schools’ assets and repaying creditors.
A judge will consider the request on Aug. 28.
Bryman Colleges, located in San Jose, San Francisco, Hayward and Los Angeles, were acquired in January 2013 by BioHealth College Inc. from Corinthian Colleges Inc.COCO +6.15%, a for-profit college operator with more than 100 schools that is now in the process of winding down its own operations. They had previously been operating under the Everest College name. Corinthian paid BioHealth $2.3 million in January 2013 to take over these schools, according to filings made with the U.S. Securities and Exchange Commission.
A lawyer representing Bryman and BioHealth in their bankruptcy case declined to comment on the employees’ situation Tuesday.
The schools’ parent company, which filed for Chapter 11 bankruptcy in July and shut down days later, lists the employees as unsecured priority creditors (a group in bankruptcy cases that often receives only partial payment) owed $96,597.30, according to recently filed court documents. This doesn’t include the $121,590 Chief Executive Sam Shirazi says he’s owed.
Former employees of the California campuses have told Bankruptcy Beat that no one received paychecks on Aug. 1, the payday following the July 25 shutdown, and that many July 16 paychecks bounced. Left jobless and frustrated, the employees are navigating the bankruptcy system to recover their wages and are finding their odds of payment to be grim.