Thread regarding Corinthian Colleges Inc. layoffs

"The company reached an agreement with a majority of its lenders to cut borrowings by 73 percent to $400 million, according to a statement today. In return the lenders would get a preferred equity stake convertible to common shares and warrants for the purchase of additional stock, according to the statement. Existing shareholders would see their stake cut to 4 percent after the conversion of the preferreds, though they will be granted warrants to purchase an additional 5 percent of the common stock." http://www.bloomberg.com/news/2014-08-27/education-management-strikes-debt-for-equity-deal-with-creditors.html