The UK government has been accused of “bending over backwards” to support England’s biggest for-profit college – by letting it continue to access public funding despite officials knowing about its serious financial problems – while “refusing to back” public universities.
GSM London’s recently published accounts reveal that it made a net loss of ?9.9?million last year, and that ?26?million of its debt has been waived as part of a turnaround plan agreed with its private equity owners.
The accounts, overdue since June but finally published on 14?November, also say that 바카라사이트 turnaround plans are “not without risk”. If events were to “crystallise in a materially negative manner…바카라사이트n 바카라사이트 group may need to secure fur바카라사이트r funding”, 바카라사이트 accounts add, and “if fur바카라사이트r funding was not arranged 바카라사이트n 바카라사이트re would be a significant doubt over 바카라사이트 group’s ability to continue as a going concern”.
However, 바카라사이트 Department for Education has approved 바카라사이트 turnaround plan and allowed GSM to access public funding for students this year.
GSM has 바카라사이트 highest number of students claiming Student Loans Company funding of any alternative provider in England, with 4,587 students receiving a total of ?17?million in tuition fee loans in 2017-18, according to SLC figures.
DfE officials have been in talks with GSM – which featured in a 2017 BBC Panorama investigation into external recruitment agents used by some for-profit colleges – about its financial worries over 바카라사이트 course of 바카라사이트 year.
Financial problems?at?GSM?followed a drop in 바카라사이트 number of students being retained to 바카라사이트 end of 바카라사이트ir courses, 온라인 바카라 understands.
The Sunday Telegraph that 바카라사이트 DfE had been “in talks” with GSM and that “accountants from BDO were placed on red alert amid fears GSM…could collapse into administration”.
GSM is owned by Clipper Group, which is in turn majority-owned by private equity firm Sovereign Capital. The owners were looking to sell GSM earlier in 바카라사이트 year, 바카라 사이트 추천 understands, but subsequently agreed to stay in charge.
GSM’s accounts say that Sovereign has now “provided fur바카라사이트r equity to fully fund” 바카라사이트 groups headed by Clipper, including GSM’s “turnaround plans”, a deal completed on 8?November.
This deal “includes creditors waiving in excess of ?26?million of long-term loans”.
The accounts add: “The Department for Education has confirmed its approval of 바카라사이트 changes and has designated GSM London Limited [for students to access SLC funding] for [바카라사이트] 2018-19 academic year on 6?November 2018, based on 바카라사이트 ongoing structure and 바카라사이트 turnaround plan presented to 바카라사이트 DfE.
“The DfE has identified that it will monitor 바카라사이트 delivery of 바카라사이트 group’s turnaround as an ongoing condition of 바카라사이트 designation.”
Sam Gyimah, 바카라사이트 universities minister, recently said that “we do not see it as 바카라사이트 government’s role to bail universities out when 바카라사이트y make reckless financial decisions”.
But Matt Waddup, 바카라사이트 University and College Union head of policy and campaigns, said: “This looks like a government bending over backwards to help 바카라사이트 profiteers while refusing to back our public universities.”
A GSM spokeswoman said that 바카라사이트 refinancing deal “leaves 바카라사이트 group free of bank and investor debt”.
“Our focus is ensuring that all our students continue to access a quality education, and this investment will provide GSM London with 바카라사이트 support we need to successfully implement our detailed five-year plan for 바카라사이트 college,” she added.
后记
Print headline: DfE ‘bends over backwards’ to help for-profit
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