Corinthian Colleges Inc. got a reprieve from the California Student Aid Commission for one of its subsidiaries in the state, but its division in Canada filed for bankruptcy protection there after regulators closed the local campuses, according to news reports.
The Heald College campuses of the Santa Ana-based for-profit schools operator had received notice from state student-aid administrators for Cal Grants that Heald students wouldn’t receive their funds after the commission said Corinthian failed to file necessary paperwork.
Corinthian promised the paperwork by March 31, and the commission stayed the revocation.
Separately, regulators at the Ontario Ministry of Training, Colleges and Universities closed all 14 campuses of Corinthian’s Everest College there, also for alleged failure to file required documents.
Corinthian then filed “an assignment in bankruptcy” under Canadian law. Duff & Phelps Canada Restructuring Inc. is the bankruptcy trustee.
The move affects about 2,450 students and about 450 employees in Canada but none in the U.S., a report said.
Corinthian Chief Executive Jack Massimino said in a statement that the company was “extremely disappointed that the Ministry has taken these abrupt actions.”
