There goes Kevin's 140,000 shares - could not have happened to a nice guy. Same for all the other executive "crooks" - http://www.streetinsider.com/Corporate+News/NYSE+to+Suspend+Trading+in+ITT+Educational+(ESI)+and+Commence+Delisting/12003952.html
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Actually...the real estate was pledged towards an unused line of credit (which of-course they don't need anymore).
Now, the ED may have the power to freeze assets in lieu of seizing them.
OK I've been watching there actions for a while now. Former instructor that got laid off. I have tons of industry experience. Some very odd behaviors here. 1. The news release was very , shall we say, emotional and argumentative for a corporate release. I am sure there are some that feel that way at HQ, but usually some cooler head prevails and they release just the facts simple statements so they don't get in more trouble. 2. They have not filed a 8-K on any of the most recent events. Yeah the major event already noted drove this, but usually you release 8-Ks for ever step. 3. No bankruptcy filing. Why?
I mean it's like they WANT to be sued. If they are bought out, well whoever gets them gets the debt and the lawsuits. So usually its better to get them in a bankruptcy. I mean outside of them being dumb, its not normal behavior for a corporation.
Bankrupt is bankrupt. Makes me laugh people don't understand that a lot of the real estate has been pledged as collateral.
ESI will have a small fraction of the revenue that it used to have and ~90% of its operations are gone. If the stock didn't manage to cross $1 in the next 20 days it would have been delisted anyway.
This is seems a bit in haste...because ESI is in a much stronger position...and the stock would actually rise.
They have nearly eliminated payroll expense and got the ED off their backs. In addition, they still have Benchmark Learning, Daniel Webster, $100 million in real estate (that can be rented, or sold), and $70 million in cash. They are not even close to being bankrupt.