Higher Education – The Washington Post
Online education firm 2U files for Chapter 11 bankruptcy, plans to go private after debt and competition issues. Deal with lenders to cut debt by 50% to $459m, extend loan maturity, and provide $110m new capital. Bankruptcy proceedings expected to end by September. Company to continue services for students and colleges. 2U valued at $5bn in 2018, now $11.5m, lost money annually since going public. Bought edX for $800m in 2021, increasing debt. Criticized for revenue-sharing agreements and program quality. USC paid $40m to end partnership with 2U. Shares dropped 64% to $1.51 after bankruptcy announcement.