Summary:
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Chapter 11 Filing: Online education giant 2U has filed for Chapter 11 bankruptcy protection, wiping out over half of its $945 million debt and transitioning to private ownership.
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Decline from Grace: Once valued at over $5 billion, 2U faced increasing competition and regulatory changes, leading to a significant drop in market value to about $11.5 million by this Wednesday.
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Debt Burden: The company’s financial struggles were exacerbated by the $800 million acquisition of edX, an online platform founded by Harvard and MIT, in 2021, which added substantial debt to its already leveraged balance sheet.
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