Dive Brief:

• For-profit college operator Corinthian Colleges Inc. has reported that it is in danger of not meeting the terms of its bank loan agreement, and it is asking lenders for a waiver to avoid default.
• The company says the issue stems from a valuation allowance related to deferred tax assets, Bloomberg reported.
• Corinthian has hired an investment bank to help explore its options.

Dive Insight:

Another for-profit college operator is in dire financial straits. Corinthian, based in Santa Ana, CA, has seen its sales figures fall for five straight quarters. New student enrollment dropped to 22,853 in the quarter ended March 31 — lower than the company’s expectations. Corinthian’s loss for the quarter was $79.6 million. Last week, another for-profit college operator, Education Management Corp., announced that it would probably breach its loan covenants.