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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.
Corinthian Colleges Inc last filed for bankruptcy, abruptly
closing 28 schools and leaving 16,000 students without classes
amid federal and state investigations.
In its voluntary Chapter 7 bankruptcy petition in U.S.
Bankruptcy Court in Indianapolis, ITT listed assets and
liabilities each between $100 million and $500 million.
The case is In re ITT Education Services Inc, 16-07207, U.S.
Bankruptcy Court, Southern District of Indiana.
(Reporting by Jim Christie)
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