Printer Friendly

COLLEGE BOUND FILES FOR CHAPTER 11; NEW RECEIVER APPOINTED

 COLLEGE BOUND FILES FOR CHAPTER 11; NEW RECEIVER APPOINTED
 FORT LAUDERDALE, Fla., April 29 /PRNewswire/ -- College Bound, Inc. (NASDAQ: CLBD) and its wholly owned subsidiary, The Ronkin Educational Group, have filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Joseph V. Del Raso, the court appointed receiver as requested by the U.S. Securities and Exchange Commission, announced the filing today and said, "I strongly believe that The Ronkin Educational Group is a viable business. Filing for Chapter 11 will offer the company protection from creditors while it seeks to reorganize its operations. This filing offers the company a shield from its creditors while at the same time provides an opportunity to the company to restructure its operations."
 Del Raso, a partner with the Fort Lauderdale office of the law firm Holland & Knight, became receiver on Monday, April 27, replacing Peter George, who had been appointed receiver last Thursday. George, a solo practitioner, resigned because of other demands on his legal practice.
 The Securities and Exchange Commission sought the appointment of a receiver for the company after the resignation of College Bound's chairman and chief executive officer, D. George Ronkin and its president, Janet Ronkin. The SEC sued the Ronkins and College Bound last week on charges the company filed misleading and fraudulent information about its finances. The Ronkins are no longer involved with the company. Charles Gusky and Scott A. Kornspan have been named co-acting presidents of the company.
 The Ronkin Educational Group provides educational counseling and test preparation to students. Services include preparation for the SAT and ACT, the MCAT, LSAT, GRE and GMAT graduate school exams, and help with the college and graduate school application, selection and admission processes.
 Founded in 1981, the company grew rapidly in the past year, and now has more than 150 centers across the country.
 "As we restructure the company, we will be closing the unprofitable centers," said Gusky. "We have to be much more bottom- line oriented right now and focus on our areas of profitability."
 In addition to reducing the number of centers, there will be cutbacks in the corporate office. "We need to make the company profitable as quickly as possible," Gusky said. "We will do what we need to do to make that happen. We cannot yet announce the number of cutbacks that will occur, either in the field or in corporate."
 As receiver, Del Raso will guide the organization's restructuring and its efforts to secure financing and to continue to serve is students as well as satisfying its third party obligations.
 "We feel that the company's intangible assets, which include a superb curriculum, a corps of talented people and a nationwide network of facilities, will make The Ronkin Educational Group attractive to outside financiers," Gusky said.
 For additional information, contact Jane Swanko at 305-663-0770 or 305-663-0977.
 Holland & Knight is the state of Florida's largest law firm. Holland & Knight's Fort Lauderdale office is located at One East Broward Boulevard. The telephone number is 305-525-1000.
 -0- 4/2/92
 /CONTACT: Jane Swanko of Jane Swanko Marketing and Media, 305-663-0770 or 305-663-0977/
 (CLBD) CO: Holland & Knight; College Bound, Inc. ST: Florida IN: SU: BCY


SS-JB -- FL005 -- 4362 04/29/92 12:12 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1992
Words:538
Previous Article:ZOOM TELEPHONICS ANNOUNCES RECORD SALES
Next Article:EQUIFAX DECLARES QUARTERLY DIVIDEND


Related Articles
OLYMPIA & YORK GRANTED PROTECTION IN CANADA AND U.S.; PROPERTY COMPANIES IN U.K. AND U.S. UNAFFECTED
COLLEGE BOUND TO SELL SUBSIDIARY TO FORMER OWNER
COLLEGE BOUND TO SELL SUBSIDIARY TO FORMER OWNER
COLLEGE BOUND SELLS SUBSIDIARY TO RAISE OPERATING CAPITAL
BIDS SOLICITED FOR COLLEGE BOUND SUBSIDIARY
New hazards in commercial leasing.
SPECTRUM INFORMATION TECHNOLOGIES FILES 10-K FOR THE YEAR ENDED MARCH 31, 1995
European bankruptcy laws: implications for corporations facing financial distress.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters