Computer Learning Centers Suspends Classes.Business, Technology & Education Editors MANASSAS, Va.--(BUSINESS WIRE)--Jan. 22, 2001 Computer Learning Centers, Inc. (Nasdaq National Market:CLCX) today announced that classes have been suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. at all 25 of the Company's Learning Centers and CLC (The Computer Language Company Inc.) The publisher of this Encyclopedia. See About this product. employees have been notified not to report to work. Negotiations related to selling the Company in a timely manner have stopped, and as a result of ceasing discussions with a prospective buyer coupled with previous actions taken by the Company's lender and the Department of Education, the Company is unable to meet its working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Due to its inability to generate working capital, the Company and its Board of Directors are exploring other alternatives, including the filing of a petition for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . As previously disclosed, the Company was notified by the U.S. Department of Education ("ED") that its disbursement DISBURSEMENT. Literally, to take money out of a purse. Figuratively, to pay out money; to expend money; and sometimes it signifies to advance money. 2. of federal financial aid to eligible students at all of its Learning Centers has been changed to procedures under Heightened Cash Monitoring 2 (see release dated January 16, 2001 for details) because ED asserts that the Company did not meet ED's "financial responsibility" standards. As noted in the release, ED's calculation of CLC's financial responsibility excluded the beneficial effect of the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. reported on CLC's balance sheet as of January 31, 2000 despite the fact that the applicable ED regulations require an institution to include "debt obtained for long-term purposes" when calculating its financial responsibility. |
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