What if CCi decides to do something else? Oh, all of you seem to neglect that the agreement may end on five days notice by either party. "Each Party may terminate this Agreement upon written notice to the other Party, and each Party is required to meet its respective obligations under the Agreement for the period when the Agreement was in effect. The effective date of the termination will be five calendar days after the date of the written notice."
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Any discussion about what happens after 6 months is likley useless. There is ample evidence that declining revenue (enrollment) and the absence of new credit combined with other obligations (interest payments, student loan refunds, etc) will result in the company simply running out of operating capital and closing well before the six month anniversary of the DoE agreement. Show me some solid evidence that contradicts this likley scenario.....
No it doesn't..if CCI survives six months, it passed the test and can simply go back to recruiting students and getting title iv. We don't have to close...I just have to hold on for six months and my job is safe.
DE and cci have an agreement. It's been widely publicized. No sale means closure for all cci schools.
Anonymous31768- There exists far more than two options. Beyond that the operating agreement among other things required two things: 1. A "good faith effort" to reach a selling agreement in six months, and 2. A teach-out plan be filed for every campus. No where in the agreement does it say what happens if a buyer is not found. The agreement does not say that the teach-out plans must be implemented after six months. And, beyond that, CCi could cancel right before the teach-out was to be required anyway.
Interesting thought, but ending the agreeement would not necessarily be a good thing. If the agreement ends, DOE could go back to the 21 day hold on funds, which would effectively close the company. Even if the agreement does not end, recent evidence suggests that the comany cannot meet obligations and is likely to close soon if a sale is not executed.
I'm so sad to learn that it's not a bifurcation.