Item 1.03 Bankruptcy or Receivership
At a meeting held on January 11, 2021 ("Creditors' Meeting"), the creditors of
Elite Legacy Education UK Ltd ("ELE UK"), a wholly owned subsidiary of Legacy
Education Alliance, Inc. ("LEAI"), approved a Proposal for a Company Voluntary
Arrangement (the "Arrangement") under the UK Insolvency Act 1986 (the "IA") and
the UK Insolvency Rules 2016 (the "IR"). Under the terms of the Arrangement, CVR
Global LLP has been appointed as Supervisor of ELE UK for the purposes of
administering the Arrangement. At the Creditors Meeting, the creditors also
approved a modification to the Arrangement whereby any tax refunds due to ELE UK
would be paid to the Supervisor and made available for distribution to
creditors. The Supervisor will wind down the business of ELE UK and make
distributions to ELE UK's non-student creditors in accordance with the
applicable provisions of the IA and the IR, on and subject to the terms and
conditions set forth in the Arrangement in satisfaction of the non-student
creditors' respective claims against ELE UK. Student creditors of ELE UK will be
provided the opportunity to receive trainings from an independent training
provider on and subject to the terms and conditions set forth in the Arrangement
in satisfaction of their respective claims against ELE UK. Pursuant to the
Arrangement, and at its conclusion, the remaining assets of ELE UK, if any,
would be distributed to LEAI. At this time, LEAI management is unable to
anticipate any distributions that would be received from ELE UK.
The foregoing description of the Arrangement is provided for informational
purposes only and is subject to the complete text of the Arrangement. A copy of
the Arrangement is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
99.1 Elite Legacy Education UK LTD, Proposal for a Company Voluntary Arrangement
1
© Edgar Online, source Glimpses