Computer Learning Centers, Inc. Makes Announcement.Business Editors MANASSAS Manassas (mənăs`əs), town (1990 pop. 27,957), seat of Prince William co., N Va., in a farm area; inc. 1873, rechartered 1938. Manassas has become a growing residential town with retail shopping centers; its development has been spurred as , Va.--(BUSINESS WIRE)--Dec. 15, 2000 Computer Learning Centers, Inc. (Nasdaq National Market: CLCX) ("CLC (The Computer Language Company Inc.) The publisher of this Encyclopedia. See About this product. ") today announced that the U.S. Department of Education ("ED") has issued a Final Program Review Determination ("FPRD FPRD Forest Products Research and Development Institute (University of the Philippines, Los Banos) ") which asserts that CLC violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. a provision of law governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the Federal student aid programs by compensating its admissions representatives based on their success in securing student enrollments. As a result of this finding, ED asserts that CLC should be required to return a total of $187 million in funds received by CLC and its students since July July: see month. 1, 1994 under the Title IV Federal student aid programs. The FPRD states that it is based on an "off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off program review," but prior to receipt of the FPRD, CLC had never been informed that ED was conducting a program review on this subject. The pending school-level ED program reviews did not have any findings on this issue. It appears that the FPRD arose from ED's participation in the investigation associated with the legal proceeding CLC announced in December December: see month. 1999. Under the provisions of the Higher Education Act The Higher Education Act may refer to an Act of either the Congress of the United States or of the Parliament of the United Kingdom.
v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , governing these matters, CLC has 45 days from receipt of the FPRD to file an appeal. Under applicable law, collection of the asserted liability is stayed, except in certain exceptional circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , pending the outcome of the appeal process so long as the appeal has been filed within the 45 day period. During the appeal period, CLC and its students also remain fully eligible to continue to participate in the Title IV programs. Upon receipt of the FPRD, CLC management immediately requested a meeting to seek a resolution to this matter and on December 13, 2000, representatives of CLC met with senior ED and Department of Justice officials to initiate discussions. While CLC is actively seeking to resolve the FPRD, it will, if a resolution is not reached before the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the 45-day period, timely appeal the FPRD to challenge the legal and factual bases of the asserted liability. Computer Learning Centers Page 2 December 15, 2000 Should CLC's appeal be denied, the Company, based on existing cash on hand and existing lines of credit under its credit facility, would be unable to meet the liabilities imposed by ED. If CLC is unable to pay the liabilities, ED may offset Title IV funds due the institution, thereby severely impairing or terminating its ability to continue operations. Receiving the FPRD did constitute an event of default of the Company's credit facility with its bank. However, the bank has agreed that it will defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. from taking any action in regard to this violation until the earlier of January 19, 2001 or the execution of a settlement agreement resolving the FPRD to the bank's satisfaction. Provided that a settlement is reached prior to January 19, 2001 and it is to the bank's satisfaction, the bank has extended the term of the credit facility to February 28, 2002. John Corse, President and Chief Executive Officer of CLC, commented, "I am extremely surprised that ED has made this determination since both the legislative history of the Higher Education Act and ED's own guidance clearly allows institutions to base salary decisions for their employees engaged in student admissions on periodic performance reviews that are based, in part, on their success in recruiting and enrolling qualified students. CLC's longstanding compensation practices, which are consistent with those throughout the postsecondary education industry, have been very carefully designed to operate within these parameters. We have spent countless hours insuring that our regulatory and compliance procedures are among the strongest in our industry, and we are convinced that CLC's compensation policies and practices are consistent with the legal standard." Mr. Corse continued, "CLC remains a unique national resource, annually graduating more qualified IT professionals than any other single training resource in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Our commitment to educational excellence has resulted in more than 75% of our graduates obtaining employment in their field of study and a student retention rate of approximately 77%. As an integral part of our commitment to our students, we have never wavered from our obligation to operate CLC in an ethical manner that is fully in compliance with all applicable federal, state and local regulations. We are hopeful that through the discussions presently underway as well as the appeals process afforded us under the Higher Education Act, we will secure relief that will avoid potentially dire consequences." Computer Learning Centers provides information and computer-related education and training at 25 Learning Centers in the United States. The Company designs programs and courses to meet current information technology education Computer Learning Centers Page 3 December 15, 2000 needs, offering instruction focused on client/server systems and applications programming, networking administration and management, help desk operations and computer technical support. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The words "believe," "expect," "intend," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. |
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