I am hearing in the investor circles several law firms are looking at filing lawsuits to block this sale. I work in the financial industry and have been following this situation for an advisory firm .
Several of the largest shareholders are funds and banks and they were not consulted regrading the incredulously low sale price.
Injunctions may be filed to block the sale ad force a shareholder vote.
Stand by, not over yet
Slow your roll - sale is agreed upon in principle - nothing is final until all of the paperwork is signed. Recent example is what happened with the Anthem/Bryman sale to IEC and how FCC messed it up.
Slow your roll - sale is agreed upon in principle - nothing is final until all of the paperwork is signed. Recent example is what happened with the Anthem/Bryman sale to IEC and how FCC messed it up.
201 is right, but the smartass tone is unneccessary. 227, 239, and 230, consider this: who really owns the banks? 178, the answer to question 1 is unknown (part of the reason why CCi went down), and the answers to 2 and 3 will depend on the terms of the deal with ECMC upon closure.
And to those who think there is no more value than 24m you need to turn in your Everest online business degree, it's apparent that high quality education isn't working out for you. Do you really think BofA would have let CCI 20 million just a few short months ago if they didn't value the company far higher than that? Foolish
CCI was under pressure to seal, and fast, they were running out of mkney and BofA was not throwing them another extension. As I mentioned earlier DOE did not have shareholders in mind, they simply wanted to prevent a BK, which they know would've generated more money, but simply wNted to avoid having
To cancel out a billion in student loans.
All you morons will see, there is a reason you work for a scam company like CCI, so deal with it, the rest of is make real money. Watch what happens first week of Decemebr , the banks did not agree to this sale
201: I have not done the research to be sure, but I am guessing that the sale price is well below the exec's option price.
Yeah, Jack and friends would like more $$ for their stock options too.
This is all complete nonsense.
Before the sale was announced the terms of the sale had to be approved by interested parties. This included the Board of Directors, the banks holding the debt and DOE. Since the sale was announced and the papers were filed with the SEC, it looks like all interested parties agreed to the sale. BTW, the banks and the government have exclusive rights to the proceeds from a bankruptcy sale, not the shareholders.
A few questions for the posters.
How many students are currently enrolled in the schools sold?
Are they planning on continuing with enrollments?
What happens with current student payment arrangements "Non Fed" due school.
176 whatever your wishes are, forget it. You are the bunch who used to say there won't be a sale, just give and go troll elsewhere would you?
171: You get an "A" for emotion and "D" for business
sense. At publicly traded companies, what is best for the investors always comes first in any decision. This remains true right to the end. Understand your frustration, but welcome to the big, bad world of business.
What happens to all the student debt that these schools have. If I seem to recall they sold 90m dollars of student debt for 19m and got in trouble by the consumer protection league. I would assume at 60+ campuses being sold has a student debt in the 100's of millions.
139, 148, 149 (same poster?): What motivation existed for CCI to not generate the most revenue possible from the sale? If selling other assets would create more money, why was that not done? Two possible answers: 1. No one was willing to pay for those other assets. 2. The DOE refused to approve a deal that would send CCI into BK, since that leaves DOE/taxpayers responsible for forgiving many loans and an increase in default, and the perception that DOE pushed CCI to BK. lf I am not mistaken, DOE retained approval authority for any deal in the operating agreement.
Who the f$@k cares what is best for the investors when people's livelihood is at stake, are you kidding me! Go peddle your crap somewhere else buster and get the hell off this board!
Dude, what slices have value? You have no knowledge of the situation, get the fu(k off the board.
Get it through your head, there is no money. Jesus, just stop scanning social media for any real substance that has the do with this deal. I posted a picture of a unicorn on my FB page, so they must exist. SMH
And you know there wasn't a proxy vote? How? Let's watch. Someone else posted about the SEC filing, investors knew what was happening, so peddle you wares somewhere else. You are full of crap.
You apprentice do my know that advisory firms scan all social media sites for companies we evaluate....you can honk what could like , watch what happens the week after thanksgiving,, latest first week of December. Board of directors cannot act on behalf of shareholders without a proxy vote
Shareholders in the event of a bk will never see any money. The cci board approved the sale on behalf of the shareholders. I'm calling bs. Not to mention only asshole trolls come on this site just to screw with people. No one with a real successful job comes here. Nice try.
Would you prefer to not know the reality of the situation, the reality is, there are plenty of law firms looking at at angle to stop this sale. It was not on the best interest of shareholders , period.
A non DOE forced sale would have generated far more value than what this fire sale obtained.
Follow the money my friend......it's just reality.
I can't speak for anyone else, but I think your conversation is completely inappropriate on a board filled with CCI employees talking shit about blocking sales with lawsuits and how it'd be better for the investors if BK was filed. Just shut the f@$k up already! You obviously don't work for CCI and you may be talking about investors, but we're taking about jobs and families here man! Go away!
and what you're also neglecting, if the company is forced into BK, the BK trustee is the advocate for creditors, share holders are creditors. So the trustee ensures the best possible price is attained. The DOE would have no say.
you're looking at one piece, I simply stated that is on unrealized asset that most do not think about. Break it up into slices and you will get far more than 24M. This is the point.
Um, as an analytics marketing person, I know who you bought your info from to build your private database. I have worked on a project where the company said it was super interested in a purchase because of the potential data. Our team showed them that for 30% of the purchase price we could get their customer base info plus behaviors. Databases don't mean anything in today's world. Unless as you are in the top half percent of the one percent, I can craft any sort of plan from established databases with paid access. Sorry that just the way at it is.
And just when this board started getting boring. This is better than the daytime TV talk-shows on which one can see nonstop Everest adverts. Now where did i put that popcorn....
Vanguard and Blackrock also own sizeable amount of shares as well as Wells Fargo
An analytics company does not have access to a private companies data base....
Actually the marketing companies have that info as well, who do you think CCI brought it from? It's not propietary info. Any analytics company has access to that information.
OP research who really owns a chunk of stock and it is Shah, everyone else tapped out. So quit talking about made up senarios until you have facts. There is no tangible product or asset of CCI, except employees and debt. That debt is owned by the Feds. Good luck with that lawsuit.
Sorry about the typos , I am literate , just on my phone and on a plane using Gogo wifi
Nobody can really know as the DOE was putting pressure in the sale to avoid student loan defaults, like worked some back end deal not to criminally indict anyone if they agreed. With that said, it's still my in share holders interest to give away the assets. Sure book value may not have been attainable, but what about a liquidation that garnered 75m, still better than 24m.
Additionally, a BK would have allowed a liquidation of the California assets which adds Atleast another 100m to the pot as those schools were and are cash cows
Well, you're only looking at the obvious, one thing you're jot seeing is CCI is a data miners dream, they have a treasure trove of data on hundreds of thousands of low income, low IQ individuals that markeyers would love to get their hands on. sorry to be blunt, but Mensa candidates are not going to CCI.
So that's ome example of unrealized asset., there are many others, you're only looking at the obvious
As an investor, I sold my stock for less than it cost in brokerage fees, and I'm taking the loss on my taxes as the only positive thing in this debacle. If you stayed in this thing hoping for a Reno me based on a sale, you didn't pay attention to the last filing with the SEC.
Shareholder suites in similar scenarios are common. The success of those suits is not common. Was a "better deal" ignored? Hard to prove that the component parts are worth $125 million. Very speculative. Something is worth what someone will pay. Where were the buyers at $125 million?
What assets are you talking about? They don't own anything...no real estate. They are going to liquidate what? Lab equipment? Leased. computers? Leased. What exactly is the value? Stock is worth pennies, lawsuits are going to bankrupt CCI before investors get a penny. investors will need to get behind all the employees that are losing their deferred compensation in a BK. Where is the value that is above 24M?
and to the poster who responded about the law firms collecting fees , you're absolutely correct, as I stated, it's all about money , there is no denying that.
However, it's also about protecting shareholder value and protecting investors.
Lets say you owned a stock in a Intel , a nice reputable company, and Intel decided that their mobile chip business is not doing well and decided to sell it off for 500 million when the book value is 3.5 billion, stock plummets, as a shareholder, would you not want someone advocating on your behalf to prevent this from happening ? Just a different perspective.
I have not posted in the past, but have actively been monitoring many boards regarding CCI.
My advisory firm advocates for investors and share holders, sorry, it's about money. The value of CCI is low, but the break up value far exceeds 24M and this sale is not in the best interest of the shareholders.
Shareholders would benefit from a bankruptcy , then a liquidation of the assets in pieces without pressure from the DOE. The breakup value of the assets sold Thursday exceeds $125M, yes, when you factor in everything, the range was $110M to $135M , so we can go with a happy median, $125M.
I would be doubtful Vanguard, Blackrock and the other funds will sit by idly and watch the assets be given away.
24M was shocking to many people. In fact it seems the schools were sold at expense to the company after adding up the payouts.