Do we have any info now that we know which locations are closing?
6 replies (most recent on top)
Poor guys. You're scr@#$ed. Chapter 7 means employees who are owed salaries are creditors and will stand in line with all of the other creditors to get paid. Severance? Don't be daft--ain't gonna happen. EDMC and all of its schools--South, Argosy, and Art Institutes filed June 29. New holding company DCEH will cherry pick the locations they want.
Too bad you stayed at the trough too long.
Filing for each school independently, not DCEH as a whole. 6/29/2018
https://www.inforuptcy.com/filings/browse-filings?count=50&page=2
You don't file bankruptcy on a company that's been purchased by another entity.
Bankruptcy is liquidating all the assets to pay down the debt that they can't pay. It's not a buyout plan.
The filings are for EDMC Not DCEH
More info on when a company files Chapter 7 and what happens to employee pay:
https://www.citybarjusticecenter.org/wp-content/uploads/2016/11/Bankruptcy-Basics-A-Guide-for-Employees_2016.pdf
Don't get your hopes up. Frankly, I'm not sure how they even plan on paying faculty any of the schools. In Chapter 7 you can't create more debt- salaries included. It's a true liquidation.
https://budgeting.thenest.com/employees-paid-company-declares-chapter-7-bankruptcy-23732.html
The email sent suggests Chapter 11 which would allow a restructuring of debt. BUT it wasn't.... on Friday Chapter 11 wasn't filed and Chapter 7 was. Making it highly unlikely that people are even eligible to get the pay owed to them much less severance.
https://www.pacermonitor.com/court/15/Delaware_Bankruptcy_Court
Bear in mind, there were far more Chapter 7 filings than the schools DCEH listed. So, I'd suggest that everyone consider themselves screwed.