November 20, 2014 / 3:28 PM / 3 years ago

Corinthian Colleges to sell 56 campuses to ECMC Group

Nov 20 (Reuters) - Corinthian Colleges Inc said it would sell 56 campuses under its Everest and WyoTech brands to non-profit education provider ECMC Group Inc as part of an agreement with the U.S. education department.

Corinthian's shares rose as much as 16 percent in early trading on the Nasdaq.

ECMC will also buy 12 schools, Corinthian said on Thursday.

The sale of the assets will raise $24 million, half of which will go to the education department under a deal Corinthian signed with the department in July in return for $16 million in federal aid.

The company had agreed to sell most of its 107 campuses and wind down others, and it has been looking for buyers.

The deal with ECMC involves all of Corinthian's U.S.-based Everest and WyoTech campuses located outside California.

Corinthian said it would continue to operate the remaining 39 campuses until it found buyers.

The Santa Ana, California-based company's shares were up 2 percent at 12 cents in late morning trading on the Nasdaq.

Up to Wednesday's close, the stock had fallen more than 90 percent this year. (Reporting by Sweta Singh in Bangalore; Editing by Kirti Pandey)

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