Corinthian Colleges Inc. (COCO:US), the operator of for-profit schools that’s shutting down, gained consent from its banks to an amended agreement with the U.S. Education Department.
Corinthian, based in Santa Ana, California, said in July it will sell or close its 107 campuses, under an agreement with the department. Earlier this month, it amended the accord to provide for a student-reimbursement fund. The change created an incident of default on its loans, and the Education Department set a deadline for yesterday for banks to sign off on the plan, Corinthian said in a Sept. 19 filing.
The lenders, led by Bank of America Corp., have agreed to the amended plan, and the company remains elibile for federal student aid, according to both Corinthian and the Education Department.