Are Apollo Education and University of Phoenix Making Stipulated Benchmarks?

Are Apollo Education and University of Phoenix making the benchmarks stipulated for the merger? If they aren't met, I'm not sure Leon Black (Apollo Global Management) has any obligation to seal the deal. I still can't figure out why Apollo Global Management agreed to up the price to $10. It didn't stop a shareholder lawsuit.

In any case, University of Phoenix is looking weaker by the day. Especially after the shareholder lawsuit and the crash of ITT Tech.

https://www.linkedin.com/pulse/apollo-group-sinking-ship-dahn-shaulis

I'm also hearing that ex-employees have recently sent some very damning information to the Department of Education, but it's up to DoED, the VA, DOD and other agencies to take action.

One thing that's protecting University of Phoenix is that Tony Miller, who worked under Arne Duncan, is supposed to guide the ship after the merger. But if Obama's friend Miller is taken out of the picture, that allows DoED to scrutinize UoPX closer with less political complications. Apollo Education does have Jane Oates and a host of lobbyists, but they may not be enough.

At University of Phoenix, it's heads they win and tail you lose. If Apollo Global Management/Vistria takes over, they will do what they do as vulture capitalists--perhaps slowly but within the next 18 months. If they back out of the deal, it will be another mess--and little protection from government agencies.

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There's no way the deal is going to happen by the date specified in the merger agreement and the school is doing so poorly now that a renegotiation is going to be tough.

The 10/9 date does line up with the previous post from the IT person regarding disconnecting access so I wouldn't totally disregard it.

It is pretty sad Dahn when their legal dept is having the posts on here deleted every other minute. They don't want any transparency. It is shameful that they are trying to censor the internet. Nothing surprises me with these guys though. They have been fleecing the taxpayer for years. When is this nonsense going to end already? You have to love how the Department of Education is selective about the schools they shut down. When are they going to do their jobs already and cut these fraudsters off?

The merger is not going to happen and we the shareholders know it.

From the last quarterly (10Q) report:

https://www.sec.gov/Archives/edgar/data/929887/000092988716000189/apol-may31201610q.htm

"In addition, consummation of the Merger is subject to our satisfying certain minimum operating metrics, measured as of the first or second month end preceding the closing date, depending on the day of the month on which closing occurs, as follows:

(i) Our aggregate cash, cash equivalents and marketable securities must not be less than the specified amount for the applicable month end;

(ii) University of Phoenix fiscal year-to-date new degreed enrollments as of the applicable month end must not have declined by more than 15% from forecasted levels (which are derived from the projections we prepared in December 2015 in connection with the Merger, which we refer to as the December forecast);

(iii) University of Phoenix trailing twelve month net revenue as of the applicable month end shall not have declined by more than 10% from forecasted levels (which are derived from the December forecast); and

(iv) Our consolidated trailing twelve months adjusted earnings before interest, taxes, depreciation and amortization as of the applicable month end shall not have declined by more than $75 million from forecasted levels (which are derived from the December forecast).

We currently expect to satisfy these minimum operating metrics if the closing occurs on or prior to October 9, 2016, which is the latest closing date for which the relevant operating metrics are derived from our fiscal year 2016 financial and operating results. However, our expected fiscal year 2016 enrollment and operating results have declined since our December forecast.

If our enrollment or operating results continue to decline, we may not be able to satisfy one or more of these closing conditions, either before or after October 9, 2016. If we fail to satisfy one or more of these closing conditions, Parent would be entitled to terminate the Merger Agreement and elect not to consummate the Merger.

There is no assurance that the conditions to the consummation of the Merger will be satisfied in a timely manner or at all.

The Merger Agreement may be terminated by each of us and Parent under certain circumstances, including if the Merger is not consummated by 5:00 pm Eastern time on February 1, 2017."

Thread regarding University of Phoenix layoffs

Are Apollo Education and University of Phoenix Making Stipulated Benchmarks?

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