(if) there is a problem with CBI it might be related to shaw whicjh had $6B in revenue at time of merger
On July 30, 2012, CB&I announced the planned acquisition of The Shaw Group for a purchase price of US$3.04 billion. The acquisition was completed on February 13, 2013 and CB&I now employs nearly 50,000 people.
JOBs and skills are the issue nationally
the craziest thing would be if MIT or an industry consortium headed by MSFT/INTC took over ITT and turned it into a real education powerhouse.
the problem at ESI is one that has been in the news for a while. The issues as I see it are: the $300M Peak Student Loan Trust that was carried off balance sheet. ESI is the guarantor of the Trust's notes and has been making payments to keep the trust from being in default. It needed the property sale to cover Trust losses, but its lenders wanted to secure their loans with the property that ESI sought to sell. Now ESI will have to carry the Peak Trust on its balance sheet, the company's net worth could be negative. This is a real mess and the firing of the CEO may and failure to file financial statements may indicate accounting irregularities. The risk in buying ESI is incalculable without up to date financials. Stay away.
I'm not sure they are negotiating with others buyers. unless i'm mistaken, the credit line ammedment released yesterday secures 20 of their properties under mortgage.
A buyer would be wondering if ESI could make the lease back payments after bailing out the Peak Trust ...or if the Dept of Ed stopped making payments....w/o up to date financial even the property buyers are guessing
my worst case scenario starts with a raid on corporate HQ by FBI and the feds. It then spirals into indictments
with the CEO fleaing to South America. In the end all ITT schools are closed due to Ebola.
IOC is sitting on a hydrocarbon volcano. Developments costs are astronomical as evidenced by xom's $19B LNG plant. IOC has done a good job playing its cards, but now its time to turn the assets over to a big boy.