Since 2008, the company has partnered with 260 colleges and universities, including Georgetown University, Morehouse College and the University of Southern California, to build online courses and degree programs. Growing competition and a highly leveraged balance sheet began to weigh down the company in recent years, resulting in multiple rounds of layoffs since 2022.
To turn the company around, 2U is entering into a deal with lenders and noteholders that will cut its debt load by 50 percent to $459 million, extend the maturity of its loans and provide $110 million in new capital. The company is seeking court approval to tap $64 million of that new capital to keep the doors open during the bankruptcy proceedings, which it expects to complete by the end of September.
The pair denied the charges, but USC — once 2U’s largest client — began to pull away from the company. In November, 2U told investors that USC was paying $40 million to the company to end the partnership, a revelation that sent shares plummeting.With business in a downturn and looming debt payments, 2U has refinanced loans, cut costs and tried negotiating with lenders since last year. Still, the company has struggled to stabilize its balance sheet.
Education Education Latest News, Education Education Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SPACEdotcom - 🏆 92. / 67 Read more »