To our Corinthian student comrades,
When a company goes bankrupt, everyone the company owes money to fights over any remaining cash and assets in court. When Corinthian declared bankruptcy on May 4, executives probably thought they were protecting the company from having to refund students. But we see it differently: Corinthian owes you money, so you should have a say in how the company’s assets get divided up. And a key player in the bankruptcy proceeding agrees.
Thanks to the courageous actions of student strikers, and with the help of attorneys from three firms, including Public Counsel in Los Angeles, all Corinthian students will have a voice in what happens to the company’s assets.
Over the last few days, dozens of students in the Corinthian Collective have been sending emails to the office of the US Trustee (the office that is organizing the bankrupctcy case) demanding to be heard.
Last night, Scott Gautier, an attorney at Robins Kaplan LLC, took a red-eye flight from California to Delaware to represent students in this morning’s bankruptcy hearing and to request that students have a voice. A few hours ago, the Office of the United States Trustee agreed to create a Committee of Student Creditors.
This means that students’ voices will be heard in Corinthian’s bankruptcy case.
This is a major step in the fight for complete debt cancellation. A few months ago, the Corinthian 15 came out of the shadows to declare a debt strike against Corinthian and the Department of Education. That group quickly grew to include over 100 debt strikers (and counting!). Now, students are no longer considered debtors who owe Corinthian money. Instead, they are creditors that have a claim on Corinthians’ remaining assets!
The U.S. Trustee will be looking for people to represent hundreds of thousands of Corinthian students around the country. Sitting on the committee does not require you to attend in-person meetings or hearings.
If you would like an opportunity to sit on the Committee of Student Creditors, you can apply by printing out this form signing it, and then faxing or emailing it to:
May 15 Update: The selection process is complete. A Committee of Student Creditors has been chosen.
While the bankruptcy unfolds, we encourage all Corinthian Collective members to keep fighting for debt cancellation. We don’t know what will happen in the bankruptcy proceeding, but we know that students are stronger when they stand together.
Love, The Debt Collective