Education Management Corporation Court Ruling in Marblegate Preliminary Injunction Hearing
PITTSBURGH, Dec. 16, 2014 /PRNewswire/ -- Education Management Corporation ("EDMC" and together with its consolidated subsidiaries, the "Company") announced today that the United States District Court for the Southern District of New York has denied the motion filed by Marblegate Asset Management, LLC and Magnolia Road Capital LP seeking to preliminarily enjoin the Company from consummating its proposed debt restructuring. The Court denied the injunction based on, among other things, the balance of equities and the public interest. The Court also concluded on a preliminary basis that the plaintiffs are likely to succeed on the claim they have asserted under the Trust Indenture Act. The Company respectfully disagrees with that aspect of the opinion and, based on the Court's order, plans to move forward promptly with the restructuring.
About the Company
Education Management Corporation (www.edmc.edu), with approximately 112,430 students as of the October 2014, is among the largest providers of post-secondary education in North America, based on student enrollment and revenue, with a total of 110 locations in 32 U.S. states and Canada. The Company offers academic programs to students through campus-based and online instruction, or through a combination of both. The Company is committed to offering quality academic programs and strives to improve the learning experience for its students. Its educational institutions offer students the opportunity to earn undergraduate and graduate degrees and certain specialized non-degree diplomas in a broad range of disciplines, including media arts, health sciences, design, psychology and behavioral sciences, culinary, business, fashion, legal, education and information technology.
Cautionary Statements
This press release includes information that could constitute forward-looking statements with the meaning of the Private Securities Litigation Reform Act of 1995. These statements typically contain words such as "anticipates," "believes," "estimates," "expects," "intends" or similar words indicating that future outcomes are not known with certainty and are subject to risk factors that could cause these outcomes to differ significantly from those projected. Forward-looking statements include, but are not limited to, statements about moving forward with the proposed restructuring. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Some of the factors that could cause actual results to differ materially include, but are not limited to: risks associated with the timing and consummation of the proposed restructuring; risks associated with the plaintiff's claims; the ability to realize the anticipated benefits of the proposed restructuring; changes in the overall U.S. or global economy; changes in enrollment or student mix; student retention; the Company's ability to maintain eligibility to participate in Title IV programs; changes in government spending; increased or unanticipated legal and regulatory costs; success of cost-cutting initiatives and growth strategies; changes in accreditation standards; the implementation of new operating procedures for the Company's fully online programs; government and regulatory changes including revised interpretations of regulatory requirements that affect the postsecondary education industry; new programs and operational changes implemented in response to the "gainful employment" financial metrics; the potential impact of the draft "gainful employment" regulation expected to be issued by the U.S. Department of Education; and other factors discussed in the Company's filings with the Securities and Exchange Commission, including those identified in the "Risk Factors" section of the Company's Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Past results of the Company are not necessarily indicative of its future results. The Company does not undertake any obligation to update any forward-looking statements, except as required by securities laws.
Investor Contact:
John Iannone
Director of Investor Relations
(412) 995-7727
Media Contact:
Chris Hardman
VP of Communications
(412) 995-7187
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/education-management-corporation-court-ruling-in-marblegate-preliminary-injunction-hearing-300010387.html
SOURCE Education Management Corporation
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