4813-2336-6758.2

KUTAK ROCK LLP

Loc Pfeiffer (VSB No. 39632)

Peter J. Barrett (VSB No. 46179)

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

804-644-1700

loc.pfeiffer@kutakrock.com

peter.barrett@kutakrock.com

Counsel to the Debtors

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

)

In re: ) Chapter 7

)

DELTA CAREER EDUCATION ) Case No. 18-33822

CORPORATION, )

)

Debtor. )

)

Tax I.D. No. 75-3135135 )

)

In re: ) Chapter 7

)

DELTA EDUCATIONAL SYSTEMS, INC., ) Case No. 18-33818

)

Debtor. )

)

Tax I.D. No. 54-1859702 )

)

In re: ) Chapter 7

)

NATIONAL CAREER EDUCATION, INC., ) Case No. 18-33829

)

Debtor. )

)

Tax I.D. No. 94-2963855 )

)

In re: ) Chapter 7

)

SOUTHWEST BUSINESS COLLEGES,

INC.,

)

)

Case No. 18-33831

)

Debtor. )

)

Case 18-33818-KLP Doc 3 Filed 07/27/18 Entered 07/27/18 14:18:59 Desc Main

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4813-2336-6758.2

Tax I.D. No. 84-0743438 )

)

In re: ) Chapter 7

)

CREATIVE CIRCUS, INC., ) Case No. 18-33814

)

Debtor. )

)

Tax I.D. No. 20-0001026 )

)

In re: ) Chapter 7

)

ATLANTIC COAST COLLEGES, INC., ) Case No. 18-33820

)

Debtor. )

)

Tax I.D. No. 54-1404068 )

)

In re: ) Chapter 7

)

MCCANN EDUCATION CENTERS, INC., ) Case No. 18-33828

)

Debtor. )

)

Tax I.D. No. 23-2192761 )

)

In re: ) Chapter 7

)

BERKS TECHNICAL INSTITUTE, INC., ) Case No. 18-33821

)

Debtor. )

)

Tax I.D. No. 36-4359439 )

)

In re: ) Chapter 7

)

MCCANN SCHOOL OF BUSINESS AND ) Case No. 18-33825

TECHNOLOGY, INC., )

)

Debtor. )

)

Tax I.D. No. 72-1132608 )

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4813-2336-6758.2

)

In re: ) Chapter 7

)

MILLER-MOTTE BUSINESS COLLEGE, ) Case No. 18-33827

INC., )

)

Debtor. )

)

Tax I.D. No. 56-1251751 )

)

In re: ) Chapter 7

)

PALMETTO TECHNICAL COLLEGE, INC., ) Case No. 18-33801

)

Debtor. )

)

Tax I.D. No. 54-2006130 )

)

In re: ) Chapter 7

)

PIEDMONT BUSINESS COLLEGES, INC., ) Case No. 18-33830

)

Debtor. )

)

Tax I.D. No. 56-1554202 )

)

In re: ) Chapter 7

)

ACADEMY OF COURT REPORTING, INC., ) Case No. 18-33819

)

Debtor. )

)

Tax I.D. No. 34-1083484 )

)

In re: ) Chapter 7

)

THE MIAMI-JACOBS BUSINESS ) Case No. 18-33826

COLLEGE COMPANY

)

Debtor. )

)

Tax I.D. No. 76-0389487 )

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4813-2336-6758.2

DEBTORS’ MOTION FOR ENTRY OF AN 

ORDER (I) DIRECTING JOINT ADMINISTRATION OF 

CHAPTER 7 CASES AND (II) GRANTING RELATED RELIEF

Delta Career Education Corporation and its debtor affiliates, as debtors in the abovecaptioned chapter 7 cases (collectively, the “Debtors”), respectfully state the following in support 

of this motion:

Background

1. On July 26 and July 27, 2018, the Debtors filed voluntary petitions under chapter 

7 of the Bankruptcy Code. At this time, no interim trustee has been appointed for the Debtors’ 

cases.

2. The Debtors are seeking relief under chapter 7 of title 11 of the United States 

Code (the “Bankruptcy Code”) in order to complete the wind down of their affairs. 

Relief Requested

3. For purposes of efficiency, the Debtors seek entry of an order (the “Order”), 

substantially in the form attached hereto as Exhibit A: (a) directing procedural consolidation 

and joint administration of these chapter 7 cases; and (b) granting related relief. The Debtors 

request that one file and one docket be maintained for all of the jointly administered cases under 

the case of Delta Career Education Corporation (the ultimate parent company for each of the 

Debtors) and that the cases be administered under a consolidated caption, as follows:

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

)

In re: ) Chapter 7

)

DELTA CAREER EDUCATION ) Case No. 18-33822

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4813-2336-6758.2

CORPORATION, et al.,

1

)

)

Debtors. ) Jointly Administered

)

4. The Debtors further request that this Court order that the foregoing caption 

satisfies the requirements set forth in section 342(c)(1) of the Bankruptcy Code.

5. The Debtors also request that a docket entry, substantially similar to the 

following, be entered on the docket of each of the Debtors other than Delta Career Education 

Corporation to reflect the joint administration of these chapter 7 cases:

An order has been entered in accordance with Rule 1015(b) of the 

Federal Rules of Bankruptcy Procedure and Rule 1015-1 of the 

Local Bankruptcy Rules for the United States Bankruptcy Court 

for the Eastern District of Virginia directing joint administration 

for procedural purposes only of the chapter 7 cases of: Delta 

Career Education Corporation, Case No. 18-33822; Delta 

Educational Systems, Inc., Case No. 18-33818; National Career 

Education, Inc., Case No. 18-33829; Southwest Business Colleges, 

Inc., Case No. 18-33831; Creative Circus, Inc., Case 

No. 18-33814; Atlantic Coast Colleges, Inc., Case No. 18-33820; 

McCann Education Centers, Inc., Case No. 18-33828; Berks 

Technical Institute, Inc., Case No. 18-33821; McCann School of 

Business and Technology, Case No. 18-33825; Miller-Motte 

Business College, Inc., Case No. 18-33827; Palmetto Technical 

College, Inc., Case No. 18-33801; Piedmont Business Colleges, 

Inc., Case No. 18-33830; Academy of Court Reporting, Inc., Case 

No. 18-33819; and The Miami-Jacobs Business College Company, 

Case No. 18-33826. The docket in Case No. 18-33822 should be 

consulted for all matters affecting this case.

 

1 The Debtors in these chapter 7 cases, along with the last four digits of each Debtor’s federal tax identification 

number, include Delta Career Education Corporation (5135); Delta Educational Systems, Inc. (9702); National 

Career Education, Inc. (3855); Southwest Business Colleges, Inc. (3438); Creative Circus, Inc. (1026); Atlantic 

Coast Colleges, Inc. (4068); McCann Education Centers, Inc. (2761); Berks Technical Institute, Inc. (9439); 

McCann School of Business and Technology (2608); Miller-Motte Business College, Inc. (1751); Palmetto 

Technical College, Inc. (6130); Piedmont Business Colleges, Inc. (4202); Academy of Court Reporting, Inc. 

(3484); and The Miami-Jacobs Business College Company (9487). 

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4813-2336-6758.2

Jurisdiction and Venue

6. The United States Bankruptcy Court for the Eastern District of Virginia 

(the “Court”) has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334. This 

matter is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2).

7. Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

8. The bases for the relief requested herein are section 105(a) of the Bankruptcy 

Code, rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rule(s)”), 

and Rules 1015-1 and 9013-1 of the Local Bankruptcy Rules of the United States Bankruptcy 

Court for the Eastern District of Virginia (the “Local Bankruptcy Rule(s)”).

Basis for Relief

9. Bankruptcy Rule 1015(b) provides, in pertinent part, that “[i]f . . . two or more 

petitions are pending in the same court by or against . . . a debtor and an affiliate, the court may 

order a joint administration of the estates.” Fed. R. Bankr. P. 1015. The fourteen (14) Debtor 

entities that commenced chapter 7 cases are “affiliates” as that term is defined in section 101(2) 

of the Bankruptcy Code. Accordingly, the Bankruptcy Code and Bankruptcy Rules authorize the 

Court to grant the relief requested herein.

10. Further, Local Bankruptcy Rule 1015-1 provides additional authority for the 

Court to order joint administration of these chapter 11 cases:

In all joint petitions filed with the Court, the case will be 

administered through joint administration of the estates unless the 

trustee or other interested party files an objection to joint 

administration within 14 days after the meeting of creditors and 

gives notice of a hearing date on such objection.

Local Bankr. R. 1015-1.

11. Joint administration is generally non-controversial, and courts in this jurisdiction 

routinely order joint administration in cases with multiple related debtors. Joint administration 

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4813-2336-6758.2

of these chapter 7 cases will provide significant administrative convenience without harming the 

substantive rights of any party in interest. The entry of an order directing joint administration of 

these chapter 7 cases will reduce fees and costs by avoiding duplicative filings and objections. 

Joint administration also will allow the chapter 7 trustee, the U.S. Trustee and all parties in 

interest to monitor these chapter 7 cases with greater ease and efficiency.

12. Moreover, joint administration will not adversely affect the Debtors’ respective 

constituencies because this Motion seeks only administrative, not substantive, consolidation of 

the estates. Accordingly, the Debtors submit that the joint administration of these chapter 7

cases is in the best interests of the respective estates, their creditors, and all other parties in

interest.

Waiver of Memorandum of Points and Authorities

13. The Debtors respectfully request that this Court treat this Motion as a written 

memorandum of points and authorities or waive any requirement that this Motion be 

accompanied by a written memorandum of points and authorities as described in Local 

Bankruptcy Rule 9013-1(G).

Notice

14. The Debtors will provide notice of this motion to: (a) the Office of the United 

States Trustee for the Eastern District of Virginia; (b) the Debtors’ secured creditor; (c) the 

United States Attorney’s Office for the Eastern District of Virginia; (d) the Internal Revenue 

Service; (e) the Debtors’ current banks; (f) the office of the attorneys general for the states in 

which the Debtors operated; and (g) any party that has requested notice pursuant to Bankruptcy 

Rule 2002. The Debtors submit that, in light of the nature of the relief requested, no other or 

further notice need be given.

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4813-2336-6758.2

No Prior Request

15. No prior request for the relief sought in this Motion has been made to this or any 

other court.

WHEREFORE, the Debtors respectfully request that the Court enter the Order, granting 

the relief requested herein and such other relief as the Court deems appropriate under the 

circumstances.

/s/ Peter J. Barrett

KUTAK ROCK LLP

Loc Pfeiffer (VSB No. 39632)

Peter J. Barrett (VSB No. 46179)

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

804-644-1700

loc.pfeiffer@kutakrock.com

peter.barrett@kutakrock.com

Counsel to the Debtors

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4813-2336-6758.2

EXHIBIT A 

Proposed Order

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Document Page 9 of 16
4813-2336-6758.2

KUTAK ROCK LLP

Loc Pfeiffer (VSB No. 39632)

Peter J. Barrett (VSB No. 46179)

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

804-644-1700

loc.pfeiffer@kutakrock.com

peter.barrett@kutakrock.com

Counsel to the Debtors

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

)

In re: ) Chapter 7

)

DELTA CAREER EDUCATION ) Case No. 18-33822

CORPORATION, )

)

Debtor. )

)

Tax I.D. No. 75-3135135 )

)

In re: ) Chapter 7

)

DELTA EDUCATIONAL SYSTEMS, INC., ) Case No. 18-33818

)

Debtor. )

)

Tax I.D. No. 54-1859702 )

)

In re: ) Chapter 7

)

NATIONAL CAREER EDUCATION, INC., ) Case No. 18-33829

)

Debtor. )

)

Tax I.D. No. 94-2963855 )

)

In re: ) Chapter 7

)

SOUTHWEST BUSINESS COLLEGES,

INC.,

)

)

Case No. 18-33831

)

Debtor. )

)

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2

4813-2336-6758.2

Tax I.D. No. 84-0743438 )

)

In re: ) Chapter 7

)

CREATIVE CIRCUS, INC., ) Case No. 18-33814

)

Debtor. )

)

Tax I.D. No. 20-0001026 )

)

In re: ) Chapter 7

)

ATLANTIC COAST COLLEGES, INC., ) Case No. 18-33820

)

Debtor. )

)

Tax I.D. No. 54-1404068 )

)

In re: ) Chapter 7

)

MCCANN EDUCATION CENTERS, INC., ) Case No. 18-33828

)

Debtor. )

)

Tax I.D. No. 23-2192761 )

)

In re: ) Chapter 7

)

BERKS TECHNICAL INSTITUTE, INC., ) Case No. 18-33821

)

Debtor. )

)

Tax I.D. No. 36-4359439 )

)

In re: ) Chapter 7

)

MCCANN SCHOOL OF BUSINESS AND ) Case No. 18-33825

TECHNOLOGY, INC., )

)

Debtor. )

)

Tax I.D. No. 72-1132608 )

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3

4813-2336-6758.2

)

In re: ) Chapter 7

)

MILLER-MOTTE BUSINESS COLLEGE, ) Case No. 18-33827

INC., )

)

Debtor. )

)

Tax I.D. No. 56-1251751 )

)

In re: ) Chapter 7

)

PALMETTO TECHNICAL COLLEGE, INC., ) Case No. 18-33801

)

Debtor. )

)

Tax I.D. No. 54-2006130 )

)

In re: ) Chapter 7

)

PIEDMONT BUSINESS COLLEGES, INC., ) Case No. 18-33830

)

Debtor. )

)

Tax I.D. No. 56-1554202 )

)

In re: ) Chapter 7

)

ACADEMY OF COURT REPORTING, INC., ) Case No. 18-33819

)

Debtor. )

)

Tax I.D. No. 34-1083484 )

)

In re: ) Chapter 7

)

THE MIAMI-JACOBS BUSINESS ) Case No. 18-33826

COLLEGE COMPANY

)

Debtor. )

)

Tax I.D. No. 76-0389487 )

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4

4813-2336-6758.2

ORDER (I) DIRECTING JOINT ADMINISTRATION OF 

CHAPTER 7 CASES AND (II) GRANTING RELATED RELIEF

Upon the motion (the “Motion”)1of the above-captioned debtors and debtors in 

possession (collectively, the “Debtors”) for entry of an order (this “Order”): (a) directing the 

joint administration of the Debtors’ chapter 7 cases for procedural purposes only; and 

(b) granting related relief, all as more fully set forth in the Motion; and this Court having 

jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334; and this Court having found 

that this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and that this Court may enter a 

final order consistent with Article III of the United States Constitution; and this Court having 

found that venue of this proceeding and the Motion in this district is proper pursuant to 28 U.S.C. 

§§ 1408 and 1409; and this Court having found that the Debtors’ notice of the Motion and 

opportunity for a hearing on the Motion were appropriate under the circumstances and no other 

notice need be provided; and this Court having reviewed the Motion and having heard the 

statements in support of the relief requested therein at a hearing before this Court 

(the “Hearing”); and this Court having determined that the legal and factual bases set forth in the 

Motion and at the Hearing establish just cause for the relief granted herein; and upon all of the 

proceedings had before this Court; and after due deliberation and sufficient cause appearing 

therefor, it is HEREBY ORDERED THAT:

1. The Motion is granted as set forth herein.

2. The above-captioned chapter 7 cases are consolidated for procedural purposes 

only and shall be jointly administered by the Court under Case No. 18-33822.

3. The caption of the jointly administered cases should read as follows:

 

1 Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Motion.

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4813-2336-6758.2

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

)

In re: ) Chapter 7

)

DELTA CAREER EDUCATION ) Case No. 18-33822

CORPORATION, et al.,

1

)

)

Debtors. ) Jointly Administered

)

4. The foregoing caption satisfies the requirements set forth in section 342(c)(1) of 

the Bankruptcy Code.

5. A docket entry, substantially similar to the following, shall be entered on the 

docket of each of the Debtors other than Delta Career Education Corporation to reflect the joint 

administration of these chapter 11 cases:

An order has been entered in accordance with Rule 1015(b) of the 

Federal Rules of Bankruptcy Procedure and Rule 1015-1 of the 

Local Bankruptcy Rules for the United States Bankruptcy Court 

for the Eastern District of Virginia directing joint administration 

for procedural purposes only of the chapter 7 cases of: Delta 

Career Education Corporation, Case No. 18-33822; Delta 

Educational Systems, Inc., Case No. 18-33818; National Career 

Education, Inc., Case No. 18-33829; Southwest Business Colleges, 

Inc., Case No. 18-33831; Creative Circus, Inc., Case No. 18-

33814; Atlantic Coast Colleges, Inc., Case No. 18-33820; McCann 

Education Centers, Inc., Case No. 18-33828; Berks Technical 

Institute, Inc., Case No. 18-33821; McCann School of Business 

and Technology, Case No. 18-33825; Miller-Motte Business 

College, Inc., Case No. 18-33827; Palmetto Technical College, 

Inc., Case No. 18-33801; Piedmont Business Colleges, Inc., Case 

 

1 The Debtors in these chapter 7 cases, along with the last four digits of each Debtor’s federal tax identification 

number, include Delta Career Education Corporation (5135); Delta Educational Systems, Inc. (9702); National 

Career Education, Inc. (3855); Southwest Business Colleges, Inc. (3438); Creative Circus, Inc. (1026); Atlantic 

Coast Colleges, Inc. (4068); McCann Education Centers, Inc. (2761); Berks Technical Institute, Inc. (9439); 

McCann School of Business and Technology (2608); Miller-Motte Business College, Inc. (1751); Palmetto 

Technical College, Inc. (6130); Piedmont Business Colleges, Inc. (4202); Academy of Court Reporting, Inc. 

(3484); and The Miami-Jacobs Business College Company (9487). 

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6

4813-2336-6758.2

No. 18-33830; Academy of Court Reporting, Inc., Case No. 18-

33819; and The Miami-Jacobs Business College Company, Case 

No. 18-33826. The docket in Case No. 18-33822 should be 

consulted for all matters affecting this case.

6. The Debtors shall maintain, and the Clerk of the United States Bankruptcy Court 

for the Eastern District of Virginia shall keep, one consolidated docket, one file, and one 

consolidated service list for these chapter 7 cases.

7. Nothing contained in the Motion or this Order shall be deemed or construed as 

directing or otherwise effecting a substantive consolidation of these chapter 7 cases.

8. The requirement under Local Bankruptcy Rule 9013-1(G) to file a memorandum 

of law in connection with the Motion is waived.

9. Notice of the Motion as provided therein is good and sufficient notice of such 

Motion and the requirements of the Bankruptcy Rules and the Local Bankruptcy Rules are 

satisfied by such notice.

10. The Debtors and the appointed chapter 7 trustee are authorized to take all actions 

necessary to effectuate the relief granted in this Order in accordance with the Motion.

11. This Court retains jurisdiction with respect to all matters arising from or related to 

the implementation, interpretation, and enforcement of this Order.

Dated: 

Richmond, Virginia UNITED STATES BANKRUPTCY JUDGE

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4813-2336-6758.2

We ask for this:

/s/ 

KUTAK ROCK LLP

Loc Pfeiffer (VSB No. 39632)

Peter J. Barrett (VSB No. 46179)

901 East Byrd Street, Suite 1000

Richmond, Virginia 23219

804-644-1700

loc.pfeiffer@kutakrock.com

peter.barrett@kutakrock.com

Counsel to the Debtors

CERTIFICATION UNDER LOCAL BANKRUPTCY RULE 9022-1(C)

Pursuant to Local Bankruptcy Rule 9022-1(C), I hereby certify that the foregoing 

proposed order has been endorsed by or served upon all necessary parties.

 /s/ 

 

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