For-Profit Corinthian Schools File Bankruptcy As Attorney General Calls for Student Debt Forgiveness

Santa Ana-based Corinthian Schools Inc. filed for bankruptcy in Delaware today, a week after the company shut down all of its California campuses.

The company listed its assets as between $10 million to $50 million, with estimated liabilities between $100 million to $500 million.

The vocational college company came under fire two years ago when the Attorney General’s Office filed suit, alleging that the company targeted its advertising toward low-income residents with inflated claims of job placement rates following graduation and training.

California Attorney General Kamala Harris and eight other attorneys general earlier this month urged the Department of Education to relieve the debt burden of thousands of students who attended Corinthian schools.

The court filing lists the 30 biggest unsecured claims. The top three are Barclays Capital Inc. of New York, $1.25 million; Ambassador Education Solutions of Melville, New York, $1.2 million; and Student Scout LLC of Chicago, $500,000.

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City News Service

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