Let's assume best case scenrio - there is a potential buyer (or buyers)that are in serious discussions with CCI. I know - that is a stretch - but hang with me here for a moment. The buyer is going to draw this thing out as long as possible. The longer this goes, the more our cash decreases, the more bad news gets publishd and so the more desperate we are to sell. That lowers the selling price. The danger is that the buyer waits too long, CCI declares bankruptcy and the students (who represent cashflow) disapear overnight, leaving nothing to buy. Discuss among yourselves......
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Anonymous28081- Or protection from creditors, which is likely what CCi will need.
- Only organizations who are looking to recover some kind of financial relief file for bankruptcy. There is no reason for CCi to do it. They are in close out mode. So sell and close are the only options.
Anonymous28014- At some point bankruptcy is the only option. It will not matter about Title IV funding.
If a college declares bankruptcy, it cannot in the future, accept any federal student aid. Period. Therefore, effectively, if CCI declares bankruptcy, it will close it's doors immediately and can never be sold. That's likely why they have not and won't file. The end result is the same.
Federal loans are cancelled when there is no where to go.
Interesting theory but not plausible for a legitimate smart buyer. As mentioned before CCI cannot easily sell off individual schools given they are all on a single network and a single student application supporting every single campus. The Bryman School that were sold a while ago were still using CCI system. A smart buyer will not want to use CCI systems and would prefer to be a standalone business with no ties to CCI. The potential buyers in the same educational industry who may have wanted some schools for locations and the student base have their own systems but they are also in the hurt-box for the government regulations headed their way. As for the Bryam students who use to be CCI students at their now bankrupt school they are unfortunately out of luck with their school closing, no place to go and student debts.
Anonymous27992- Broken record.
News next week on the purchase.
That actually would make better sense. FOr any college system that has a campus near an Everest campus, it would be better to "pluck" who is there then inherit the campus altogether. Revenue increases without overhead. When a campus has to go, a campus has to go. It's unfortunate for those who did put their heart into their students,but business of education is business of education.
I agree with 985. It's actually not strategic to wait if they are seriously interested. Honestly, the best thing to do is to offer current students to transfer to other schools if they are close to one of their own campuses.
It's my understanding they're already at rock bottom prices.
No snart buyer would purposely make it's potential purchase worth less money. That's just really stupid.
Interesting thought. But the truth is, if theoretically there was a serious buyer, they would negotiate hard soon will low ball offers. THe longer they wait, they too will lose students/ revenue. No matter what, any buyer would have the leverage point and can go low. CCI is not looking to make money off the deal, they need to sell quick and save some campuses, students and employees.
Let's follow your logic. Would it not be better to allow it to go into bankruptcy? Then you can pick it up for 5 cents on the dollar? Would you want to keep the students?????
You assume "best case scenrio" (whatever scenrio is) ends in CCi declaring bankruptcy. ok.