Rider University Chapter of the AAUP
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    • Update on Kaiwen Education's Financial Status
    • Arbitration Over Layoffs at WCC
    • Kaiwen Education 2018 Annual Report
    • By Federal Reserve Standards Kaiwen Education is a Highly Leveraged and Risky Business
    • Two Updates on Kaiwen's Finances
    • Due Diligence and Kaiwen Education
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    • New Jersey Attorney General’s Office Delivers Major Setback to Rider University’s Plan to Sell Westminster Choir College
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    • Faculty Shocked to Learn Secret Agreement Would Allow Buyer to Close Westminster Choir College
    • Universities as the Guardians of Assets
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    • New Information Reveals Chinese Corporation Plans to Take $20 Million Westminster Choir College Endowment despite Prohibitions Imposed by State/Federal Law
    • More Bad News about Kaiwen
    • Claims v. Reality
    • AAUP Challenges Legitimacy of Newly announced Non-Profit Said To Be Created To Run Westminster Choir College
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      • A Message from AAUP regarding the potential layoff of Westminster Faculty
      • ​Update on Westminster
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Rider University Chapter
​American Association of University Professors

New Information Reveals Chinese Corporation Plans to Take $20 Million Westminster Choir College Endowment despite Prohibitions Imposed by State/Federal Law

Filings in China Expose Illegitimate Profit Seeking Motive for Purchasing Non Profit Music School

In the Meantime, More Bad Economic News Belies Corporation’s Ability to Sustain WCC

Contact: Dr. Jeffrey Halpern 609-937-8981

Lawrenceville, NJ, September 6, 2018 - In a recent filing with the Shenzhen Stock Exchange Beijing Kaiwen Dexin Education Technology Co., Ltd. (“Kaiwen Education/The Company”) was required to provide supplemental information about its purchase of Westminster Choir College. 

As part of the inquiry The Company was asked to elaborate on “the pricing basis and rationality” of the transaction “in combination with the main assets of the subject, asset evaluation report and the adjustment of the transaction price…in the agreement.”

In response Kaiwen Education made clear their intentions: “The scope of the acquisition subject includes all tangible assets, intangible assets, real estate and used or available rights of the Westminster Choir College, Westminster Conservatory of Music and Westminster Continuing Education, including but not limited to school premises; teaching equipment and facilities; licenses, agreements and other instruments related to such schools; all the courses; receivables; operational information and records; intellectual property, etc., as well as the donated funds to be transferred to Westminster Choir College and all the newly added donations received before the delivery date.” (Emphasis added)

The Endowment is valued at almost $20 million. 

According to Dr. Jeffrey Halpern of the AAUP, “The Kaiwen filing reveals that the endowment of Westminster Choir College, a non-profit corporation with tax deductible status, along with the campus and all College assets would become the property of a for-profit company. According to the federal tax code not-for profit corporations must not be organized or operated for the benefit of private interests.” U.S. Internal Revenue Service, Inurement/Private Benefit - Charitable Organizations, available at https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations. But if this sale is consummated those assets will now benefit the for-profit corporation and its shareholders and that, we believe, is in clear violation of State and Federal law.”

Halpern added  “all of these donations were made with the express and specific understanding that they were to a not-for-profit 501(c)(3) institution organized under New Jersey and federal charitable laws, their transfer to a for profit commercial enterprise violates those regulations and the express wishes of the donors. This sale constitutes a raid on those assets and should be investigated by the appropriate governmental agencies.”

In the meantime, Kaiwen Education continues to put up disturbingly poor economic numbers as revealed in its 2018 Semi-annual Report (Aug. 7, 2018),  which covers the first six months of this year. During this period Kaiwen reports a Net Loss of 51.7 million Yuan on Revenues of 89.4 million Yuan, a loss of 57.8%, which follows a first quarter 2018 Net Loss of 74.3%. Looking ahead the Company projects a Net Loss of from 65 to 75 million Yuan for the period January – September 2018. 

Halpern said “Kaiwen’s continuing pattern of net losses and very low cash to short term debt raises serious concern about its ability to sustain itself over even the midterm and is another example of a reality that is very different than the one being promoted by the Rider administration.”


kaiwen_claims_v._reality.docx
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shenzen_inquiry.docx
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kaiwen_more_bad_economic_news.docx
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  • Home
  • About
    • Mission Statement
    • Chapter Meeting Minutes
    • Presentations from AAUP Meetings
    • Meeting Dates 21-22
    • Points of Contact
    • AAUP Officers
    • AAUP Awards >
      • Bertram Mott Award
      • Henry J. Frank Award
    • P&T Committee Members
    • APC Committee Members
    • UAPC Committees
    • Training for College/School Academic Policy Committee Members
    • CIM Training Video
    • Membership
    • Assumption of Risk and Waiver Form for Employees that is required for travel funds
  • Contract
  • Grievances
    • Grievance Process
    • Amendments to Grievance Process, Updated April 2016
    • Grievance Procedure Explained
  • Constitution
    • I - Name
    • II - Purpose
    • III - Membership
    • IV - Dues
    • V - Chapter Officers
    • VI - Committees
    • VII - Election of Officers
    • VIII - Removal of Officers
    • IX - Disciplining of Members
    • X - Meetings
    • XI - Contract Ratification
    • XII - Finance
    • XIII - Amendments
  • Saving WCC
    • Decision on Standing Lawsuit
    • AAUP Response to Provost Fredeen's October 2nd Email
    • Important Information on Campus Consolidation
    • Chinese Company Out As Buyer Of Westminster Choir College
    • Kaiwen is Gone
    • Kaiwen Education Reply to a June 2019 Inquiry from the Shenzhen Stock Exchange
    • Update on Kaiwen Education's Financial Status
    • Arbitration Over Layoffs at WCC
    • Kaiwen Education 2018 Annual Report
    • By Federal Reserve Standards Kaiwen Education is a Highly Leveraged and Risky Business
    • Two Updates on Kaiwen's Finances
    • Due Diligence and Kaiwen Education
    • Chronology of a Crisis
    • WCC Reset
    • New Jersey Attorney General’s Office Delivers Major Setback to Rider University’s Plan to Sell Westminster Choir College
    • Westminster Foundation Press Release on AG Investigation
    • Purchase Agreement
    • Faculty Shocked to Learn Secret Agreement Would Allow Buyer to Close Westminster Choir College
    • Universities as the Guardians of Assets
    • Press Release Kaiwen Finances
    • 2019 Report on Kaiwen
    • DejaVuDellOmo
    • Kaiwen Announcement 1/11/19
    • AAUP Goes to the NJ Assembly
    • Sign the Petition to Save WCC
    • WWCAC Letter November 8 2018
    • Kaiwen Education: Report on Company Performance Through the Third Quarter 2018
    • New Information Reveals Chinese Corporation Plans to Take $20 Million Westminster Choir College Endowment despite Prohibitions Imposed by State/Federal Law
    • More Bad News about Kaiwen
    • Claims v. Reality
    • AAUP Challenges Legitimacy of Newly announced Non-Profit Said To Be Created To Run Westminster Choir College
    • Label Your Stuff!
    • WCC Alumni Council Questions and Answers
    • Statement on Proposed Sale of Westminster Choir College Faculty Union Vows to Continue Oppose ill-conceived Sale of Iconic Music School
    • June 7 Letter to Board
    • A Failure of Due Diligence
    • Bond 2017
    • Chronology of the WCC Crisis
    • Kaiwen Education Technology
    • Pending Legal Actions >
      • Legal Complaints against Rider University over Sale of WCC
    • The Legacy of Westminster Choir College
    • Updates and Information Sent to Faculty from AAUP Leadership >
      • A Letter to WCC Faculty regarding President Dell'Omo's Letter
      • Open Letter to Board of Trustees
      • Letter to Faculty
      • How a For-profit Company Might Ruin Westminster
      • A Message from AAUP regarding the potential layoff of Westminster Faculty
      • ​Update on Westminster
    • Press Releases >
      • Outrage Over Rider University's Plan To Sell Legendary Choir College To Chinese For-Profit Company With No Experience in Higher Education
      • DellOmo Lays Off Entire WCC Faculty
    • WCC Crisis in the News >
      • The Coalition to Save Westminster Choir College Initiates Spin-Off Discussions With Rider University Administration
    • Letters of Support for WCC >
      • Eric Whitacre Praises Westminster
      • Statement of support from NJ Higher Ed Leadership Council.
      • Support for Westminster Choir College
    • Teach In at WCC
    • WCC Teach In Audio >
      • Remarks by Laura Brooks Rice
      • Have American Universities Lost Their Way? by Joel Phillips
    • Governance Standards in Institutional Mergers and Acquisitions
  • 2022 Negotiations
    • Negotiation Updates
    • STRIKE FAQ
    • AAUP's Response to Admin's "Critical Need for Change"
    • AAUP v. Admin Proposals
    • CREDO >
      • Admin's Prioritization Report
      • WCC Students Petition DellOmo
      • Dr. Sanjay G. Reddy Speaks to the Chapter
      • A Bargaining Unit Member's Guide to Credo Part 1
      • A Bargaining Unit Member's Guide to Credo Part 2
      • Rider AAUP Executive Committee Recommendations Concerning Credo Consulting
      • Administration Attempts to Bully AAUP Executive Committee
      • Save Rider Rally