Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

ConnectEDU files for bankruptcy after Gates Foundation grant

Author: Joel R. Glucksman

Date: May 13, 2014

Key Contacts

Back

Citing an inability to repay its over 200 creditors, college and career planning startup ConnectEDU filed for protection under Chapter 11 of the bankruptcy law on April 28, according to Inside Higher Ed. The company offers planning and tracking tools to aid students looking for colleges and post-college jobs that match their interests and abilities.

In July, the startup received a $499,375 grant from the Bill & Melinda Gates Foundation to create a platform for students to work together to learn Common Core standards for literacy, according to the news source. ConnectEDU is the second education-related startup funded by the foundation to be struggling financially. Student data repository inBloom announced its plans to shut down last week after receiving millions in startup funds from the foundation.

In its bankruptcy filing, embedded by BontInno, ConnectEDU estimated assets between $1 million to $10 million, compared to liabilities of $10 million to $50 million. The company listed Maryland ed-tech VC firm New Market Education Partners as its largest creditor, holding $1 million of its debt. The New York Times Co. and AOL were also listed as creditors.

Workers at the company received letters on April 28 notifying them that they were due to be terminated as of 3 p.m. the same day, according to BostInno. One anonymous employee told the news source that up to 50 employees lost their jobs, including CEO Evan Nisonson. CFO Paul Sheppard supported this statement, telling the news source that Nisonson is no longer with the company, but that he has been asked to stay on.

In a release sent to BostInno the afternoon of April 29, ConnectEDU indicated that it intended to pursue sale and restructuring alternatives that would enable the CourseEval business to exit Chapter 11.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Understanding Portability for Estate and Gift Tax post image

Understanding Portability for Estate and Gift Tax

Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]

Author: Marc J. Comer

Link to post with title - "Understanding Portability for Estate and Gift Tax"
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool post image

Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool

For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]

Author: Marc J. Comer

Link to post with title - "Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool"
How Can Trusts Be Used in Business Succession? post image

How Can Trusts Be Used in Business Succession?

For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]

Author: George McGowan

Link to post with title - "How Can Trusts Be Used in Business Succession?"
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know post image

Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know

In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]

Author: George McGowan

Link to post with title - "Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know"
New York NDA Requirements for Businesses post image

New York NDA Requirements for Businesses

Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]

Author: Dan Brecher

Link to post with title - "New York NDA Requirements for Businesses"
New Jersey Will Contest Grounds Explained post image

New Jersey Will Contest Grounds Explained

How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]

Author: Marc J. Comer

Link to post with title - "New Jersey Will Contest Grounds Explained"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!