When we no longer have the cash to pay bills and make debt payments (we are nearly there....) we will close. The DOE will not shut us down - the creditors will.
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Q:If DOE hasn't shut us down yet, what's the point now? A: DOE is looking for an orderly shutdown.
I think my original point got lost. It was simply that CCI schools continue in a way they've continued for years, despite possible criminal actions, among other complaints. If DOE hasn't shut us down yet, what's the point now? By December, CCI won't even exist anymore. (Or will be in teach out campus wide. Pretty much it's all going to end.) That's my point. Despite major issues, they continue to run in exactly the same manner as they have.
Actually let me correct this: The 2 that were cut off were in teach-out, and I don't even count those, but the larger issue is that ED is willing to cut Title IV funding. The claim was that ED hasn't ever cut funding, but that simply is not true.
319- Sorry, but CCi is UNDER 100 campuses, so it is OVER 2%!
306, that's not even 2% of our campuses.
296- ED has cut the Title IV funds to two campuses.
296 - My thoughts exactly. ED is passing along a portion of the title IV funds for those students enrolled, but it clearly is not enough for all of the payables plus debt service. Add to that the declining enrollment and the restriction on what Title IV dollars cannot be used for, it seems that the end is very near.......
296, that DOE hasn't cut funding yet is indicative that they won't, IMO. However, with no line of credit, vendors quitting and ending goods and services, and a dropping student population, it's a wonder how they keep running day to day.
There is also the "going concern" issue that auditors must consider, and ED can cut the Title IV funds off for that too.
280, and them there's the little issue of a criminal investigation.
CCi has six months to file audited financial statements, otherwise the Title IV funds can be restricted or cut off. And yes, ESI (ITT) has not filed its 10-K for a fiscal year ended December 31, but ED seems willing to work with them. The reason that ESI did not file was not quite the same as CCi's current state of affairs. Sure there are many struggles in this industry, but the Title IV funds were already cut for two CCi campuses that were already in teach out. ED could have simply ignored the problem long enough for the problem to go away by itself, but instead, accelerated the situation.
If I am not mistaken, ITT's year end report - due in March this year - has still not beeen released.
Don't hold your breath for the 6/30/14 annual finanicals or any 10k report on financials. I talked to their audit firm and they pulled their teams out in June for lack of payments and they never completed the annual financial reviews. CCI cant issue financial statements or reports independantly as a publicly held company. They just may delay as long as possible then close the doors. The absense of auditied fiancials is also a huge issue for the sales with the few legitimate potential buyers they have talked to. All of which took exception for the way the company is inter-connected which cannot be cleanly seperated apart is a sale would to occur "meaning you cant just sell Heald or Whytech as a stanld alone deal".