IBJNews

ITT Educational shares reeling after deal falls through

Back to TopCommentsE-mailPrintBookmark and Share

Shares of Carmel-based ITT Educational Services Inc., a for-profit college operator, fell as much as 32 percent Monday morning after a deal to sell and lease back real estate fell through.

Shares slid to $9.72 in late-morning trading. The stock price has fallen about 70 percent since the beginning of the year, including Monday's loss.

College Portfolio Buyer LLC canceled the purchase of up to 24 properties on July 29, ITT said in a filing with the U.S. Securities and Exchange Commission after the markets closed Aug. 1. The sale would have brought ITT Educational as much as $119.1 million, the company said May 8 in a separate filing.

State attorneys general, the Consumer Financial Protection Bureau and the SEC are scrutinizing marketing, loan and accounting practices at ITT Educational. The company has said that the Education Department may require it to post a letter of credit to continue qualifying for federal student grants and loans.

The company also said on Aug. 1 that it was arranging financing for a letter of credit of as much as $98 million, an increase from $80 million, in case the Education Department demands it.

When questioned about College Portfolio Buyer, ITT spokeswoman Nicole Elam said that was a “generic” name used in the filing to identify an undisclosed potential buyer. ITT explored the sale as part of a review of its real estate holdings, she said.

ADVERTISEMENT

  • Same as K12 Charter Schools in Indiana
    Other than grade level, how is ITT different than K12 Charter schools in Indiana? Both invest as little as possible to maximize profit. All at the expense of the students. Like K12 charter schools in Indiana, it's not about graduation rates, it's about attendance and how many seats can be filled. More filled seats = more $. Look at Arlington HS / Tindley - EdPower run / as the K12 version of ITT.
  • Market Not Rewarding ITT
    Katherine - I think you have it backwards. The ITT business model sets up conditions for predatory lending for unneeded classes to many questionable students. ITT makes the loans seem easy and attractive and promotes high paying jobs to would be students. This company is all about profits rather than education. The market rewards and penalizes business models, business decisions, service consumers on the basis of performance and sustainability. Unfortunately for ITT, the market is speaking loudly.
  • It is bad for students and employees if ITT goes under
    It isn't good for Indiana or the rest of the country if ITT doesn't succeed. I worked there for years and they had the most conservative controls of any company I have worked for. They really do help students who want to succeed. The serve a portion of the population that most schools won't even allow to enroll. So, yes, they will have a higher drop out rate or default rate. But, if there are no longer schools that will give these students a chance, then where will they go? ITT serves students and creates jobs for Hoosiers and across the nation.
  • Good...
    I hope all of the other diploma mill, federal aide wasting, debt saddling, morally bankrupt for-profits go under. Somethings are NOT best served by the market, education being one of them.
  • uhhh
    The state can't just merge ITT with Ivy Tech. Ivy Tech is a private university and not state owned or run.
  • ITT has been on the edge for years
    What is it with ITT, they have been on the edge for years and have had ample time to clean up their business practices and loan practices. Perhaps it would be better if the State of Indiana took them over as a State run educational company and merged it with IVY Tech. Seems that they cannot escape their own bad business practices.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT