Everest College files for bankruptcy protection in Canada

The U.S. parent company of Everest College, Corinthian Colleges, has announced Everest has filed for Canadian bankruptcy protection. This comes one day after the closure of 14 Everest campuses across Ontario.

• Everest College shut down in Ontario, 14 schools closed

• Everest College students in Ottawa share anger at sudden closure

On Thursday, the superintendent of privatecareer colleges, the independent regulator governingacademic institutions like Everest in Ontario,said it suspended the chain'slicence to operate in Ontario as a private college.

In a statement to CBC News, the office said it "can propose to revoke a private career college's registration if [the superintendent is] no longer satisfied that it can be expected to be financially responsible in its operation as a private career college, considering its current financial position."

• Kitchener Everest College closure puts 'everybodys life on hold'

• Everest College students in Windsor in limbo as school closes

However, no other reason for the Everest shutdown was given.

Reza Moridi, the Ontario minister of training, colleges and universities, addressed the situation in a statement.

"Since the suspension occurred, the superintendent [of private career colleges] has been working diligently to put training completion plans into place for students," said Moridi. "While this is still a challenging situation for students, Everests bankruptcy does not change these ongoing efforts, nor does it change the superintendents ability to administer the $3 million for the benefit of Everests former students through the Training Completion Assurance Fund."

Moridi added that over the next few days, the superintendent and ministry staff will assess student access to training completion opportunities or tuition refunds, depending on what each student decides.

Corinthian Colleges said in a statement on the Everest websitethat at the time of the closings, the Canadian campuses had approximately 2,450 students and 450 employees.

"We are extremely disappointed that the ministry has taken these abrupt actions." said Corinthian chairman and CEOJackMassiminoin the statement. "Our Canadian subsidiary had been working with the ministry for an extended period of time with the goal of achieving a satisfactory outcome for students, employees and other stakeholders in Canada."

Corinthian saidDuff & Phelps Canada Restructuring Inc.will be working as the trustee in bankruptcy for the case.

The companyaddedthe filing for bankruptcyprotection in Canada will have no effect on itsU.S. operations.