U.S. Trustee Roberta DeAngelis said that a bankruptcy judge should reject a proposed sale of Education Training Corp.'s schools because the sale occurred prior to the company's chapter 11 filing and was designed to skirt federal regulations, Dow Jones Daily Bankruptcy Review reported today. Education Training — a for-profit school that operated post-secondary schools under the Anthem and Florida Career College brands — filed for chapter 11 protection in August, immediately following a quick sale of 14 of its campuses in an effort to keep them operational. Had Education Training still been the owner of the schools when it filed for bankruptcy, the U.S. Department of Education would have revoked those schools' ability to accept federal student loan dollars. Those dollars made up 90 percent of Education Training's revenue, meaning that action by the Education Department would have rendered the schools basically worthless.
