The bankruptcy trustee mopping up after the collapse of ITT Educational Services Inc. has lined up $6 million worth of financing for the cleanup effort, the Wall Street Journal reported on Saturday. Loans are coming from finance affiliates of Cerberus Capital Management, an existing lender to the failed for-profit educator, operator of the ITT Tech chain. Lawyers for bankruptcy trustee Deborah J. Caruso say that the cash is desperately needed, as the trustee can’t do much without funding. A bankruptcy judge in Indianapolis will review the loan at a hearing next week. ITT Tech shut its doors abruptly in September, after federal education authorities cut off its access to taxpayer-backed loans. The sudden closure was a shock to some 40,000 students enrolled for the fall semester and some 8,000 employees.
