But it's clear those posting about bankruptcy don't understand what that means for a college. Therefore, they have NO knowledge about it. From what I understand, DOE will not allow bankruptcy, because the government can't afford to forgive 75,000 loans worth $25,000 each. Also, doors close the day they would file, because they can't accept any government funding. I'm not in the know, but I have an educated opinion based on research and media reports. Don't take my opinion, or anyone's lack of knowledge as concrete. But common sense seems to indicate teach out before bankruptcy if there is no sale.
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The DOE would never approve BK for CCI. If they could have filed imagine they would have done it months ago.
A BK petition for a college is very straightforward. The college simply files BK. Then it is over.
I think it's clear people don't understand the bankruptcy process for colleges and universities. It's actually quite simple research. Do it for yourself and you will see that many are just wrong about the facts. The process is different for a college/university than a traditional business and it's all on the government website.
"75,000 loans worth $25,000 each"... pshh, not their bachelor's degrees. Double that dollar amount, at least.
How many admissions reps have been let go? Once the "sale" is "dead", they will be the first to go - No reason to employ salespeople!
Odd as it may seem - at least to me - CCI does have some level of perverse leverage here. DOE does NOT want BK. That would leave taxpayers holding the bag for a substantial ( no, not all...) number of loans. It could be argued by some that DOE drove CCI to BK - a perception that DOE does not want. I don't agree with that perception, but it will be argued as such. There is nothing sacred about the DOE deadline. They imposed it, they can adjust it if need be to facillitate a sale or an orderly wind-down that minimized taxpayer exposure.
Any creditor can file a BK.
998: I believe that there will be a sale, and probably to ECMC. Unlike most people, though, I believe it will be a true fire sale and that ECMC does not intend to actually run schools like CCi did. They are also not interested in getting into the financial aid processing business through Socle. It's just not clear exactly what they do want, but I'm guessing that at the price they'll get us for it doesn't have to be much. I think ECMC are doing a favor to ED by purchasing and then at least overseeing a teach-out of the current students.
Ok...keep toking away on that pipe. You say it is not the same as running a full school...salaries pay for themselves through recruitment practices. So they shrink the staff down to service students and that alleviates some of the financial burden...but the rent, utilities and bills stay the same. So yeah they will use less toner and paper products but that is a drop in the bucket. The most expensive part of running a school is real estate related...mark my words, they will not make it trough a teach out. The DOE has not authority over whether or not CCi files BK...the do not and will not have that power. The DOE does not want to see a BK cause that puts them in a bind and that is why they are working with CCi to sell or wind down operations. But once the 6 months are up it is shut down time folks! It drives me nuts how there are people who think they are going to survive this nightmare that CCi created...it is not going to happen.
It's been reported that DOE will not approve bankruptcy. Teach outs will be paid through tuition, just as it runs today. But understand a teach out is not a full crew. They'll have instructors for classes, a Dean, a CP, an FA and maybe security. That's it. They'll let everyone else go immediately. They'll sell everything off and keep a few classrooms open. They'll consolidate buildings in one city. It's NOT like running a full school and students still pay tuition, so there is income.
Who will pay for said teach out? CCi does not have the funds to make it through a teach-out and will ultimately file bankruptcy and close it doors. The only students that the DOE will have to worry about forgiving their loans will be those who are actively in school. Haven't students been dropping like flies and the student population depleting as we type? Anybody have a real count for how many students remain enrolled at a CCi location these days? People keep referencing 75,000 students but wasn't that the same number when this all went down a few months ago? If they have been able to maintain their student population through retention and new starts, why are they in this financial mess in the first place?
48973 - SEC filings can't include things that might happen. SEC filings can only mention deals which have been signed, otherwise they must point out that the process is underway, but no certainties can be guaranteed at this time. It's a formality of the process.
What grinds my gears is that all higher ups can tell employees in meetings is that "the buyer is all in" and "the sale will happen eventually" and "not if but when." In reality, the language of all of the SEC filings state that there is NO guarantee there will be a sale. I'm so tired of the doublespeak.
The DOE has no choice in the matter should CCI wish to file BK.
I suspect that amy deal that might get done will happen close to the deadline. I also suspect also that if we hit and a deal is imminent but not finalized, DOE will extend the deadline. DOE does NOT want to forgive a massive amount of loans.
Why the jump to BK now I thought the SALE just hit a snag. Just wait people we will know before the end of the month. Either way we have no influence over the outcome.
Finally, someone posts something logical, with some thought being put into it. My question to the OP is when do you think they will announce a teach out?