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Education Resources requests four-month exclusivity extension
By Jennifer Lanning Drey
Portland, Ore., July 10 - Education Resources Institute, Inc. requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Massachusetts.
The company wants to extend the exclusive plan filing period to Dec. 3 from Aug. 5 and the solicitation period to Feb. 3, 2009 from Oct. 6.
The company said it has only recently come into a position to address the remaining issues on which its reorganization will depend, after entering into a new transition services agreement with First Marblehead Corp.
Specifically, the company said it needs to continue to evaluate its relationship with lenders that have security interests in its assets to determine if they are oversecured or undersecured.
Additionally, Education Resources said it needs to complete its analysis of the scope, validity and perfection of the lenders' security interests and to evaluate the collateral held by securitization trusts and the company's rights to a residual interest in those trusts.
The company also needs the time to be able to evaluate its potential liability to lenders that are secured and have unsecured guaranty claims.
Finally, the company said it needs to determine the value of its assets and the most effective way to deploy them in order to develop a long-term business plan and exit strategy.
A hearing is scheduled for July 24.
The company, a Boston non-profit access-to-education promoter, filed for bankruptcy on April 7 in the U.S. Bankruptcy Court for the District of Massachusetts. Its Chapter 11 case number is 08-12540.
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