Santa Ana-based Corinthian Colleges Inc. said it would sell some assets to raise money to fund the winding down of its operations but that federal regulators had blocked a second deal.
The two asset sales together total at least $39 million, according to news reports.
The for-profit school operator agreed to sell some student loan notes, equipment from its WyoTech schools teaching in the automotive services area, and real estate in Melbourne, Fla.
No price or buyer was named, but Corinthian lender Bank of America previously said it would require the education company to sell the assets for at least $20 million, the reports said.
A separate, $19 million sale of a portion of its student loan portfolio to an undisclosed buyer in an Aug. 20 auction was blocked by the U.S. Consumer Financial Protection Bureau.
The bureau said the sale violated consumer protection laws and gave Corinthian until Aug. 29 to respond, reports said.
Corinthian said it may take an impairment charge of $55 million to $59 million on the loan sale.
In a third event California’s Department of Veterans Affairs withdrew approval for the school operator when it didn’t meet a 60-day deadline set by the department to demonstrate financial stability, according to reports.
The barring of GI benefits for veterans affects about 1,400 veterans and dependents at 23 Corinthian schools in the state.
Corinthian agreed last month to begin closing or selling schools and campuses as part of a shutdown of the company. At the time, it served 72,000 students at 107 campuses in the United States and Canada.
