For-profit Corinthian Colleges exploring strategic alternatives

Tue May 6, 2014 8:28am EDT

May 6 (Reuters) - Corinthian Colleges Inc said it would explore strategic alternatives as student enrollments decline and the company faces potential legal action from U.S. regulators.

The for-profit education company said its board had authorized the retention of an investment bank to explore its options.

California-based Corinthian faces potential legal action from U.S. consumer regulators over issues related to student loans.

The company also said it was in non-compliance with certain bank debt covenants, but expected a waiver.

Corinthian faces a multi-state inquiry by 13 attorneys general into its business practices. (Reporting by Rohit T. K. in Bangalore; Editing by Simon Jennings)