A.a.f.
The quotes you posted, are they from LKH? If they are, then what we have been thinking may be coming to pass. My remark about "Jumping the gun" was not meant to offend. I guess untill it's made public, it's just another rumour, but even I didn't think they would do it so soon!
As for the Cadets getting their money back, I suppose it all depends on the "contract". I'd be surprised however if they weren't at least billed for the training they have recieved to date.
A hard lesson, and another nail in the coffin of the profession.