EDMC, 58 School Affiliates Open Del. Ch. 7 For Windup

By Jeff Montgomery (June 29, 2018, 10:00 PM EDT) -- Education Management Corp. and 58 affiliates of the long-struggling for-profit schools firm entered Chapter 7 liquidation in Delaware bankruptcy court on Friday, less than four years after a $1.5 billion out-of-court restructuring with lenders and bondholders.

Documents filed with the court late Friday included little more than an introductory petition for the case, led by Education Management II LLC,  noting that the businesses were carrying $500 million to $1 billion in liabilities into the process, along with a 1,429-page list of creditors.

EDMC had come under intense pressure in recent years over its finances, student debt loads and post-graduation outcomes. The...

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