Source: http://www.tmajcr.org/journalofcorporaterenewal/june_2015?pg=25
Timestamp: 2019-04-18 18:37:13+00:00

Document:
Given the hurdles created by Congress vis-à-vis the amendments to the HEA and Bankruptcy Code, what are some key takeaways for the restructuring professional in advising a financially troubled IHE?
appears to be off the table.
• While a sale of an IHE as a going concern in Chapter 11 may be possible, FCC Holdings illustrates that in many, if not most, instances, the machinations called for to accomplish the sale will be prohibitive.
we keep business liquid in the U.S. and Canada.
• Even with a qualified buyer, achieving the consensus of all vested parties—the DOE, state licensing agencies, accreditation commissions, and secured lenders—is also a prerequisite to a successful sale. As such, establishing a meaningful dialogue with these constituencies at the onset of the sale process is critical.
1 20 U.S.C. § 1070 et seq.
2 Id. § 1001 et seq.
3 See id. §§ 1001(a) & 1002(a).
4 11 U. S.C. § 101 et seq.
5 Betty Owen Schools, Inc. v. United States Department of Education (In re Betty Owen Schools, Inc.), 195 B. R. 23, 32 (Bankr. S.D.N. Y. 1996) (citing S. Rep. No. 102-204, 102d Cong., 1st Session. at 3, 44 (1991)).
6 20 U. S.C. § 1002(a)( 4); 34 C.F.R. § 600.7(a)( 2). 7 34 C.F.R. § 600.7(i)( 2).
8 Betty Owen Schools, 195 B. R. at 32.
9 11 U.S.C § 362(b)( 15).
10 Id. § 362(b)( 16).
11 Id. § 541(b)( 3).
12 134 B.R. 399 (Bankr. E. D. Cal. 1991).
albeit non-transferable under Section 363). 14 134 B.R. at 402.
15 195 B.R. 23 (Bankr. S. D. N. Y. 1996).

References: § 1070
 § 1001
 § 101
 v. 
 § 1002
 § 600
 § 600
 § 362
 § 362
 § 541