- We sold some loans (at a heavily discounted rate) for 19 million. 2. That will not be enough, and we still need addtional funding/cashflow to meet the operating agreement. 3. Yet another regulatory agency has busted us for out of compliance business practices, but they are willing negotiate a settlement. Bye-bye to more cash.
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284 that was another 8k. This is new filed today
284 that was another 8k. This is new filed today
We will not likely make it to October. That's post the 10% paycut period. Though Im
Not sure how they've lasted so long being so top heavy with management considering how student population has plummeted.
Severance is not mandatory and it wouldn't be located in an SEC filing. You'll have to read past internal emails for any information regarding anything like that. I've never seen anything about job security or severance in any internal emails.
This is from last week. I read this and posted it back them.
Anonymous30278- There is nothing in here about that, but there has been plenty in other documents. The other person has it right: When you are in toner emergency, don't expect any severance or anything else. Actually the question is how many more paychecks will you get.
Can someone read this document to the people looking for Severance and/or hoping to keep their jobs.
What's another million?
Oh, and we only have to come up with 40% of 2.5M today, or $1M today. The $1.5M cash balance is due on October 20, and will be reported in our cash flow forecasting. "a consent and amendment fee (the “Amendment Fee”) in an amount equal to 2.5% of such Lender’s Commitment as of the Effective Date. The Amendment Fee shall be fully earned as of the Effective Date and shall be payable in cash (a) on the Effective Date in an amount equal to 40% thereof and (b) on October 20, 2014 in an amount equal to 60% thereof."
Student refunds are MIA!
- To get quick cash, we might sell certain assets, including "the sale of certain equipment from the Wyotech business."
- And, of course, we must show what we actually did with our cash. "on or prior to Thursday of each calendar week, (A) a report setting forth actual cash receipts and disbursements (by line item) of the Domestic Borrower and its Domestic Subsidiaries for the preceding calendar week, together with a comparison of such amounts to the most recent cash flow forecast delivered by the Borrowers and (B) a narrative explanation of any variances of any material line items for such preceding calendar week reflected in such report;"
- Every week we must disclose what we plan to do with every dime of cash for the next 13 weeks. "on or prior to Thursday of each calendar week, an updated thirteen (13) week cash flow forecast setting forth all projected cash receipts and disbursements (by line item) of the Domestic Borrower and its Domestic Subsidiaries on a weekly basis for the thirteen (13) week period commencing with the following calendar week;"
- We must tell our lenders how far behind we are paying our bills, "on or prior to the Thursday of the first full calendar week of each calendar month, an accounts payable aging schedule as of the end of the preceding calendar week" (That's PAYABLE, not receivable aging)
- We must refund up to 160 students, since ED denied recertification at two campuses that were already in teach-out. "On August 22, 2014, the Company received a letter from ED in which it denied recertification of Everest Cross Lanes, citing alleged misrepresentations and breach of fiduciary duty at the Decatur campus that was an additional location of Everest Cross Lanes until 2013. Pursuant to the Operating Agreement, now that ED has denied 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). As of July 31, 2014, the Eagan and Cross Lanes campuses had combined enrollment of approximately 160 students."
Reading between the lines: 5. We still have not funded the $30M student refund fund yet.
My addition: 4. We still don't have cash, and have no way to know if we will find some. "Company continues to need to obtain additional sources of liquidity to fund its operations and to implement the agreements contemplated by the Operating Agreement. To do so, the Company will continue to seek additional sources of liquidity through new financings, additional cost reductions, accelerated asset sales or some combination thereof. 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. 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 exacerbate the Company’s existing liquidity constraints."