Jan 22 Education Holdings 1 Inc, the
former owner of the Princeton Review test-preparation business,
filed for bankruptcy protection a month after it agreed to
settle allegations that it had made claims for tutoring services
that it had not provided.
The company, whose biggest shareholder is Bain Capital
Venture Fund, listed assets and liabilities of between $100
million and $500 million in its Chapter 11 petition filed on
Education Holdings sold the name and brand of the Princeton
Review -- best known for its guides to prepare for competitive
U.S. university pre-exams such as SAT, GRE and GMAT -- to TPR
Education LLC last March.
TPR Education is not part of the bankruptcy proceedings and
was not part of the civil lawsuit brought by the U.S. Justice
Department over claims that Education Holdings had falsified
student attendance numbers and invoices to participate in a
government program providing tutoring services to
under-performing schools in New York City.
Education Holdings admitted to engaging in fraudulent
conduct and paid $10 million last month to settle the case.
None of the company's affiliates or subsidiaries, including
its Penn Foster online unit, had sought bankruptcy protection.
Education Holdings said its pre-packaged bankruptcy plan,
which requires approval from the bankruptcy court, had the
support of senior secured lenders and prepetition noteholders.
It listed Falcon Investment Advisors and Sankaty Advisors
among its largest unsecured creditors.
The Case is In re: Education Holdings 1 Inc, U.S. Bankruptcy
Court, District of Delaware, No:13-10101.