"At 9:00 am on Thursday, November 20, 2014, Drinker Biddle client ECMC Group, together with Corinthian Colleges and the United States Department of Education, announced an agreement for the sale by Corinthian to ECMC of 56 career colleges generating roughly $1 billion in revenue annually.......
"The Drinker team was led by Drinker Biddle lawyers John Przypyszny, Jonathan Tarnow, Charlie Rose, Jack Michel, Kelly Martin, Rick Coe, David Woolf and Mike Pompeo.
In the coming days, John Przypyszny, Jonathan Tarnow and Chris Porter will lead ECMC's effort to obtain the myriad accrediting, state and federal regulatory approvals necessary to consummate the transaction, while Jack Michel, Kelly Martin, Ira Kalina, Mike San Giacomo, and Howard Levine will assist ECMC, which has never operated a school, in building the infrastructure necessary to operate what will be the largest system of non-profit career education schools in the United States and to turn the acquired schools around and remake their cultures.
In the transaction, ECMC will convert the acquired 56 Corinthian campuses and related operations to not-for-profit status, reduce tuition by 20 percent, "right size" educational programs at each campus to match local job markets, assume Corinthian's obligations under more than 50 leases and hundreds of contracts, and provide education to all students enrolled at the schools. The acquired campuses will be operated by a newly formed ECMC subsidiary, Zenith Education Group, and will have more than 30,000 students and employ between 5,000 and 7,000 administrators and staff. The proceeds from the sale will be used to help student borrowers retire some of their private student loan balances, compensate students and former students who can prove that they were injured by Corinthian's lending and advertising practices, and retire a portion of Corinthian's indebtedness.
Within 48 hours after its announcement, this transaction was covered by more than 100 publications ranging from TheHuffington Post to Businessweek to the Los Angeles Times to the Wall Street Journal."
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