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
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SOURCE Education Management Corporation