http://m.bizjournals.com/pittsburgh/blog/morning-edition/2014/08/edmc-could-be-sold-in-debt-deal.html?r=full
7 replies (most recent on top)
Temporary ......is code for "we are are going to dump this thing anyway we can to get our money out" they have no interests in finding it a nice new home. Why should they, its business, they made loans to EDMC in good faith and they got burned.
According to these guys the ownership would be temporary ???
From http://www.bizjournals.com/pittsburgh/blog/morning-edition/2014/08/edmc-could-be-sold-in-debt-deal.html
"It wasn't clear how long the lenders would own EDMC -- which is now owned by Goldman Sachs and Providence Equity -- but it's likely to be a short time, according to the Post report."
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A part of EDMC is going to sold off as equity towards the 1.3 billion that we owe
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No layoffs will happen instantly. Forget about anything happening Sept. 15. Layoffs will come a few months later in chunks. Any redundant, bloated, unnecessary personnel are going to get cut. Big cuts in management heads as well.
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Schools are going to be merged to have common accreditation. Apollo group may be approached to run the schools. KKR has no knowledge or interest in running schools.
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Majority of changes will happen before the end of this year.
Anonymous30675, Western State College of Law looks like it has value. That may also be true for some Art Institute schools. What else has much value? If EDMC does liquidate, perhaps they will be able to sell those two brands (along with their lucrative accreditation). I cannot imagine all the Art Institutes just disappearing.
The lenders are not in the business or running schools, nor do they want to. There is now way it will just switch hands and be business as usual. I predict they will either chop it up into smaller bits and sell it, or they will liquidate.
It's possible that no one besides insiders will know until September 15. Maybe Goldman Sachs can make a few dollars buying, lending, and selling stock until then (they were key in destroying EDMC). After that, it doesn't look good for many workers and students. Be prepared for a bloodbath.
It would be equal to Dog The Bounty hunter coming to repossess your car due to lack of payment! Common sense tells me that this is not good. At this point, it's safe to say the Ed West and his team of crooks have depleated as much cash from that place as possible. Now leaves the front facing low-level staff. My advice would be to jump ship as soon as possible and move on with your professional career.