No worries? "...the Company may still need to obtain additional sources of liquidity to fund its operations..."

From the July 3rd Memorandum of Understanding: "The Company believes the Operating Agreement and the Memorandum Amendment are positive steps for the Company and all of its stakeholders. However, depending on the timing of the Company’s asset sales and its ability to further reduce operating costs, the Company may still need to obtain additional sources of liquidity to fund its operations and to implement the agreements contemplated by the Operating Agreement. To do so, the Company may continue to seek additional sources of liquidity through new financings, additional cost reductions, accelerated asset sales or some combination thereof. There can be no assurance that the Company will be able to obtain any such additional needed liquidity on a timely basis, on terms acceptable to it, or at all."

http://www.sec.gov/Archives/edgar/data/1066134/000110465914050216/a14-16628_18k.htm

Comment! It's anonymous!

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Since no new money in (no Genesis, no replacement for Genesis) we'll have to cut expenses more. If you thought we were lean and mean before, wait for a month and see what we look like then. Here's a hint: imagine a boiler room full of half-starved junkyard dogs.

Well we aren't getting it from genesis. Thoughts on that?

Any over/under bets on when the monitor will be announced? I say more than 3 weeks

And let's not forget about the $30M fund: "The Operating Agreement also provides that the Company and ED will work together to establish a reserve fund to support student refunds. The total amount of the fund will be determined in consultation with the Monitor, but will be no less than $30 million."

Anonymous20277- Not exactly. "Section IV of the Operating Agreement limits the Company’s use of Title IV student aid funds to funding the normal daily operations and expenses of the Company, which categories are set forth in an exhibit to the Operating Agreement and include student refunds, payroll expenses, operating expenses, interest and related fees, and related professional fees. The Company has agreed that from and after the Effective Date, it will not use Title IV student aid funds to pay dividends, legal settlements of lawsuits or investigations, or debt repayments. Additionally, bonuses, severance payments, raises and retention agreements being considered must be discussed with the Monitor and reported to ED at least two weeks prior to the creation of contractual obligations and payment and are subject to ED approval. The Monitor is to be provided full access to review all disbursements by the Company to confirm compliance with the terms of the Operating Agreement."

After that Dept of Ex approved additional funding for paying employees.

Thread regarding Corinthian Colleges Inc. layoffs

No worries? "...the Company may still need to obtain additional sources of liquidity to fund its operations..."

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