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ITT Educational Services files for bankruptcy to start liquidation
Source: Reuters
U.S. | Fri Sep 16, 2016 | 10:39pm EDT
ITT Educational Services files for bankruptcy to start liquidation
By Jim Christie | SAN FRANCISCO
ITT Educational Services Inc filed for bankruptcy on Friday to liquidate its business after the U.S. government restricted financial aid to new students of the U.S. for-profit college operator.
The filing follows ITT's decision earlier this month to shut its 137 technical college campuses in 39 states, a move affecting about 35,000 students and 8,000 employees.
Reuters on Thursday reported ITT had hired restructuring consultants Alvarez & Marsal LLC and bankruptcy law firm Faegre Baker Daniels LLP to prepare the filing.
The U.S. Department of Education in August banned ITT from enrolling new students who receive federal aid, a critical source of revenue for the Carmel, Indiana-based company.
ITT had been under government scrutiny over allegations of fraud and deceptive marketing tactics amid a push by the U.S. government to enforce tighter rules on the for-profit education sector.
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ITT Educational Services files for bankruptcy to start liquidation
By Jim Christie | SAN FRANCISCO
ITT Educational Services Inc filed for bankruptcy on Friday to liquidate its business after the U.S. government restricted financial aid to new students of the U.S. for-profit college operator.
The filing follows ITT's decision earlier this month to shut its 137 technical college campuses in 39 states, a move affecting about 35,000 students and 8,000 employees.
Reuters on Thursday reported ITT had hired restructuring consultants Alvarez & Marsal LLC and bankruptcy law firm Faegre Baker Daniels LLP to prepare the filing.
The U.S. Department of Education in August banned ITT from enrolling new students who receive federal aid, a critical source of revenue for the Carmel, Indiana-based company.
ITT had been under government scrutiny over allegations of fraud and deceptive marketing tactics amid a push by the U.S. government to enforce tighter rules on the for-profit education sector.
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Read more: http://www.reuters.com/article/us-itt-education-bankruptcy-idUSKCN11N01U
