As you are quickly learning (but was explained long ago), Zenith was only created as a shell company to unwind all of CCI. It was never intended to be a going concern entity. All of you who thought you were safe are quickly finding out (but were clearly warned long ago) that the DOE made a deal with ECMC to essentially invent a school for just long enough to develop a teach out plan and minimize loan forgiveness. Sucks to be you.
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Where is your evidence? Post this deal that you are speaking of.
Non profits are nothing more than for profits without the stock holders. They also get tax breaks that the for profits don't. Another thing is they are held to lower standards than the for profits.
Non profits still need revenue...that's why state schools jack up tuition the way they do. ECMC bought a decades worth of revenue stream for pennies, and got the blessings of the ED. All they had to do as invent a "school" to slowly unwind the CCI remainders.
Explain your take on what a non-profit company is?
Ecmc gets to collect on the debt...which is its core business.
So explain what the benefit is to a non profit entity to engage in this sale?
Of course this was a deal put together by the DOE. 24m was such a low price to pay for the schools with CCi being close to 200m in debt everyone should have known the sale wasn't legitimate especially when the DOE kept most of the money.
Everyone had to know this was the end game. When the government wanted to shut CCI down they than realized that by doing so a large number of students would be left affected and most importantly the tax payers would be saddled with the student loan default. This is why they bent over backwards to work a deal to set up Zenith as a long term plan to teach-out the school and eventually shut down the operations. They got what they wanted to shut down CCI and saved faced from the political fallout for the student loan debts crisis. Now the CA Attorney General knew this and would not play ball which is why the CA schools and Heald were not part of the deal. When CCI filed for BK the damage was bad but far less worse then if ECMC had not been part of the larger wind-down deal. All the other states who had massive law suits against CCI had to pull them back and not hold Zenith accountable for that as part of the deal because they also did not want the political headache for the students left out as well as the student debt mess.