May 6 Corinthian Colleges Inc said it
would explore strategic alternatives as student enrollments
decline and the company faces potential legal action from U.S.
The for-profit education company said its board had
authorized the retention of an investment bank to explore its
California-based Corinthian faces potential legal action
from U.S. consumer regulators over issues related to student
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