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U.S. court approves Corinthian Colleges’ liquidation plan

REUTERS
Copyright (c) 2015 Thomson Reuters
August 27, 2015
U.S. court approves Corinthian Colleges’ liquidation plan – WSJ
Mansi Goenka
(Reuters) – A U.S. bankruptcy judge has approved Corinthian Colleges Inc’s plan to liquidate its assets, facilitating the company’s final winding-down process, the Wall Street Journal reported on Wednesday.
The liquidating plan sets aside more than $4 million as debt relief to help former students pursue discharges for student loans incurred at Corinthian schools, the Journal said. (http://on.wsj.com/1VbZZo8)
Corinthian was not immediately available for comment.
Late last year, Corinthian sold off more than half its campuses after it was subject to multiple federal and state probes into matters as whether it misled investors and students about its finances and job placement rates.
Corinthian abruptly closed its remaining 28 schools in April and left 16,000 students without classes, becoming the largest failure in for-profit higher education.
Corinthian filed for bankruptcy in May and soon after the U.S. Department of Education announced a plan under which tens of thousands of former Corinthian students could seek relief from their federal student loans.