Thread regarding Zenith Education Group layoffs

ECMC is financially stable, that's why they have trouble making payroll every three months until the advance from the DOE comes in. ECMC is not as financially stable as it was a year ago and Zenith Education Group is burning through what cash reserve ECMC has.

Zenith won't last three years.

There is no cash advance from Ed. ECMC is more then financially stable, and all are aware that this is a three year turn around.

200M is a drop in the bucket when they get 1.3 Billion in student debt to collect. A nice return on their investment I'd say.

Z-zzzz-zzzz-zzzzzzz. Stick to the facts boys

Actually the comment about the wind-down of the core business was the motivation for ECMC to buy the school business in the first place. It wasn't about financial stability but rather reflected the reality that managing loan portfolios for the government was a business model that was ending due to the way the government makes student loans. It had been reported in the press long ago that ECMC's core business only had about 20 years to go before the loans in the existing portfolios under its management matured and stopped earning any fees for the company. They had plenty of cash to work with and was in far better shape than CCI was to make a go of it.

So, how's that working out for ECMC? Dave has blown through the 200m the ECMC board of directors allocated for the first two years of Zenith's existence in less than a year and Zenith is still losing money. If it wasn't for the money the DOE is advancing Zenith we would all be unemployed. The next three to six months will be critical to the survival of Zenith Education. Expect more RIFs and school closings the second quarter as Zenith tries to become self sufficient and if they don't look for a shut down the end of June.