Santa Ana-based Corinthian Colleges Inc. and its lenders agreed to a forbearance on certain elements of the company’s debt, according to an SEC filing by the company yesterday.
Separately Corinthian said it sold its QuickStart information technology corporate training business on Sept. 26 for a net price of $2.75 million.
Corinthian last month missed paying back loans from May 2012 with lenders led by Bank of America.
The recent SEC filing said the lenders agreed not to respond to the default by suing, foreclosing or other financial actions against the company until Dec. 31, unless Corinthian enters bankruptcy or defaults again on some other point.
Corinthian agreed to use proceeds from the sale of QuickStart to repay loans, and agreed to pay $5 million on Oct. 23 and $2 million on Nov. 21 to the lenders.
Corinthian also said it would use proceeds from property sales and excess funds from a reserve account it agreed to establish with the U.S. Department of Education to pay down the loans.
The for-profit schools company is winding down its operations after state and federal investigations. Corinthian, as of June, when it agreed to shut down, operated about 107 schools in North America with 72,000 students.