This is so close to zero that bankruptcy is not much worse.
6 replies (most recent on top)
Ah, so we're given over to Ax-men to strong arm our deadbeat students into repayment of past-due loans. At least now we know where we work. A payday loans place that fronts at a college. Genius!
I think 723 is on the right track. The only viable asset I can see is the ongoing revenue for existing - and future - students in the form of Title IV funding. The only other potential I see is for them (ECMC) to have first shot at collecting past-due loans (there are LOTS of those in the CCI world) and to then retain X percent of what they collect - which is their current business model.
"what exactly did they buy?" Title IV eligibility does not come easy. It might be worth $24M plus the costs associated with operating at a loss for some time.
713 - I don't get that either. My campus is in a decades old rental space with only furniture and outdated computers as assets. If this is the state of things across the system then what exactly is ECMC getting out of this deal? The only thing I can figure is that they're buying all that student debt the same way your mortgage gets traded around between holding companies. But that doesn't really make sense either since the bulk of that debt is in the form of Stafford loans that get repaid to the fed. Sure they only paid $24 Mil. but what exactly did they buy?
Everest campuses weren't assets, those were liabilities. Every single one of them was operating in the red.
BK is surely coming, they have no assets left, really , what other choice will they have?