Any update on this internally?
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Lmao edx has millions of losses tied to it. It's not an asset it's a liability. The brand is the only asset. But if creditors took edx that's fine, at least degrees makes money
The debt they took out may have been used to purchase EdX but that doesnt mean the debt is tied to EdX and that EdX is collateral on the debt.
Ok so what assets is 2U going to sell that they don't already have debt on?
Please enlighten me.
But the creditors dont take control that easily and can be at the mercy of the courts -
In Chapter 11, the business or individual filing for bankruptcy has the first chance to propose a reorganization plan. These plans may include downsizing business operations to reduce expenses, as well as renegotiating debts. In some cases, plans will involve liquidating all assets to repay creditors. If the suggested path is deemed feasible and fair, the court will accept it, and the process will move forward.1
Who do you think the creditors are? The people holding the debt on the EDX transaction.
I dont think its that simple - if 2u declares Chapter 11 they get protection from the creditors and can attempt to restructure the debt.
Never going to happen. Why would someone who holds $1B in long term debt refinance the debt, when they could force the shareholders out and take the EDX asset for themselves, which has millions of revenue tied to it.