Corinthian Colleges Inc, the for-profit college operator hamstrung by federal and state investigations, filed for bankruptcy in Delaware on Monday, about a week after announcing it would shutter its remaining campuses and cease operations.
Santa Ana, Calif.-based Corinthian listed debts of more than $143 million and assets of just $19.2 million, saying in court papers the bankruptcy would help it "complete the orderly wind-down of its operations."
Corinthian was in hot water for allegedly misleading students and investors about its finances and job placement rates. In April, the Department of Education fined Corinthian $30 million for misrepresenting job placement rates to students in its Heald College system, and determined that Heald would no longer be allowed to enroll students.
On April 26, the company announced it would close its remaining campuses and work to find other schools for roughly 16,000 affected students.
IN-DEPTH
- Displaced Corinthian Students Lament School Closure
- Corinthian Students Face Tough Choice to Discharge Loans
-- Reuters