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CCL USG Restructuring: A Strategic Move Towards Student Housing Viability

On June 25, 2025, Corvias Campus Living – USG, LLC (CCL USG) announced its decision to file for Chapter 11 bankruptcy as part of a strategic move to restructure its partnership with the University System of Georgia (USG). This announcement comes as part of CCL USG’s ongoing efforts to ensure a financially viable future for student housing across nine Georgia campuses. Despite years of dedication to providing high-quality housing, shifting market conditions and increasing operational costs have rendered the current arrangement unsustainable.

Commitment to Quality Housing

Over the past decade, CCL USG has positioned itself as a responsible steward of student housing, playing a vital role in the lives of thousands of students. As a partner to USG's Board of Regents (BOR), the organization has managed housing at institutions such as Georgia Southern University and Augusta University. Recently, it was recognized with the SatisFacts Community Award for 2024, reflecting its commitment to excellence in student housing management.

However, changes in the operational landscape—most notably influenced by the COVID-19 pandemic—have led to unexpected challenges. CCL USG has endured a loss in housing revenue, lower-than-anticipated student occupancy rates, and escalating costs. In response to these pressures, the organization has made significant sacrifices, even foregoing management fees to maintain service standards over the past five years.

The Need for Restructuring

As it stands, the current student housing program is no longer sustainable. CCL USG has made extensive attempts to collaborate with the BOR to find solutions that would support the partnership moving forward. Unfortunately, these negotiations have not yielded results. With the financial viability of the program now at stake, CCL USG has opted to utilize the Chapter 11 process as a means to seek constructive engagement with BOR and its noteholders.

This restructuring effort is focused solely on CCL USG, meaning other Corvias businesses will continue operations without interruption. The organization’s leadership believes this approach will ultimately safeguard the housing program and enable them to maintain high standards through the transition.

Commitment to Students and Community

CCL USG remains steadfast in its commitment to the students who depend on its services. Throughout the restructuring process, the organization plans to uphold its quality operations and maintenance services, ensuring that students continue to receive an exceptional living experience. The program will fulfill its obligations to employees, vendors, and partners through available cash resources, contingent on bankruptcy proceedings approval.

Future Steps

With a focus on long-term sustainability, CCL USG aims to use this process to emerge as a stronger partner to USG. Additional updates regarding the bankruptcy proceedings can be accessed via the U.S. Bankruptcy Court for the District of Delaware’s designated website.

CCL USG is being advised legally by Morris, Nichols, Arsht & Tunnell LLP and financially by CohnReznick Advisory LLC, who are guiding the organization through this pivotal business transition.

As the student housing landscape evolves, CCL USG takes this leap into restructuring not as a retreat, but as a strategic initiative designed to enhance its services and secure the future of housing for students in Georgia. Through collaborative efforts, expert advice, and a focus on financial viability, CCL USG remains committed to building a resilient housing experience for generations of students to come.

For more detailed information on this restructuring process and its implications, updates can be found at Corvias Campus Living's official site.