Sorry to say all -- the combination of HCM2, no new enrollments and another $150M in LOC means ITT is going BK.
The DOE rules will not allow any severance, so I suggest starting to look today for a new job. I do not mean to be harsh, just a realist.
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Severance will not happen (see Corinthian or Anthem Education). Very clear, jobs will end the day ESI and the bankruptcy lawyers want (will be this week).
At this point, with all the recent news, ITT may as well be renamed VCR...because nobody cares any more.
Why would anyone want to hire on? Why would anyone want to enroll? There are simply too many decent options. A sincere apology from the senior management to employees and students might help, a little.
HCM2 is the real killer. ITT doesn't have the funds to self fund and wait on a delayed reimbursement from the DOE. Not enough cash on hand. ITT knows that and are hopefully implementing the teach out plan they gave ACICS. Bagdad Bob/Nicole Elam can say all she wants about due process. Corinthian filed all the same motions in federal courts and it didn't work.
Just to be clear, the no severance rule is for directors and management and it could do them with DOE approval. In other words, this applies to CEO, CFO, board of directors, etc. Deans, chairs, instructors would not be affected. BUT, severance is difficult if you are bankrupt, and yes that is the most likely outcome of this.