U.S. court approves Corinthian Colleges' liquidation plan: WSJ

Reuters News
Posted: Aug 26, 2015 10:07 PM

(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.

(Reporting by Mansi Goenka in Bengaluru; Editing by Lisa Shumaker)