Mosaica Education, Inc

Situation Mosaica Education, Inc. operated charter schools in multiple states and overseas with more than 8,500 students actively enrolled in 24 local schools. After several years of supporting unprofitable schools and investing in international ventures Mosaica found itself unable to meet its debt service obligations to its principal secured creditor and was seriously delinquent in paying withholding tax obligations to federal, state and local governments. The IRS alone was owed over $1.0 million. In addition to problems at the Mosaica level, many of the independent charter schools had significant liquidity and debt problems, compounding the severity of the situation. Action GGG was appointed as Federal Receiver of Mosaica by the United States District Court for the Northern District of [...]

2017-11-25T16:56:04+00:00 Education, Receiver, Sale|

Life University

Situation Founded in 1974, Life University set the standard of excellence in contemporary health for its chiropractic undergraduate and masters degree programs; the school had obtained an all-time high enrollment and was embarking on an expansion program.  Unfortunately, Life University was then challenged with a loss of accreditation and defaulted on $35 million in secured bond debt. Action GGG was retained as Director of Refinancing to prepare and implement a budget based on declining attendance and to negotiate a forbearance agreement with the Trustee and Bondholders.  Shortly thereafter, GGG also assumed the role of Chief Financial Officer, a position that was vacated when the CFO suffered an untimely heart attack.  Integral [...]

Charter School of Arts and Sciences

Situation The Charter School of Arts and Sciences, one of the largest in the U.S., was experiencing severe losses. As a result, the school’s authorization was at risk.  In addition, expansion had been financed with $30 million in secured tax-free bond financing. Action GGG was retained as Director of Organization. GGG worked closely with management and educators to re-engineer the cost structure of the school.  In short order, the financial terms of numerous vendor contracts were reduced and payment plans were negotiated.  Additionally, GGG, working intimately with the school’s CFO, bondholders and counsel, negotiating modified terms and forbearance of the bond issue. Results The school’s profitability, positive Fund Balance,  was [...]

2017-11-25T16:21:41+00:00 Education, Turnaround|