Basically they are closing down but will keep the bare minimums going like instructors. Start looking for a job people. Read up on a teach out.
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What are all those creditors going to do? Simply watch everyone else get paid?
CCi will be allowed to draw down more money as they make profess on the DOE request and present their plan to shut down and sell current operations. The money MUST go for current operations (ie. employees, books, etc) and cannot be used for long-term debt or executive bonuses.
To be fair, roughly $100M (again I'm rounding up from some number like $90M) was reclassified long-term debt to current about March 31, 2014. In other words, roughly $100M might be due in just under a year, but it's still due within a year from March 31. So $100M of the total, use $300M or $400M as you so desire, isn't a pressing issue. But the interest and other expenses continue. In the release on May 6, there was $274M in current liabilities, but by May 8, the $90M in long-term debt was reclassified as current, so the total current bill (liabilities) ended up at that $362M. I have not spent the time to try and figure it out, but I suspect that it is related to the so-called "First Amendment." It does not matter that much, however, since CCi has already said it will default by June 30.
You know, I was thinking $400M was way high, but just payroll and benefits for two weeks should be more than the $16M. Wow, it's sure not going to go very far, is it?
Even if you round down the current bills (liabilities) to $300M, how far does $16M go?
$400M when you round the $362M up to the nearest $100M.
$362,275,000 on March 31. Likely higher today. Source: http://www.sec.gov/Archives/edgar/data/1066134/000110465914037670/a14-9787_110q.htm
It is NOT $400M
Who is teaching out so far?
Where are you getting the $400M figure? That sounds high.
Recall that CCi owes almost $400M in current bills (liabilities). $16M is 4% of that, well below the cost of capital. But beyond that, $16M is "just enough" to keep operations going for the final agreement. Who knows how much cash was already in the bank, but such cash plus $16M will keep them on life support for the next week.