(Adds details, background; updates shares)
June 19 (Reuters) - Corinthian Colleges Inc, a U.S. for-profit education provider, said it may not be able to continue as a going concern after the Department of Education delayed some reimbursements related to a student loan program.
The company's shares plunged as much as 67 percent to a life-low of 28 cents to become one of the top percentage losers on the Nasdaq on Thursday morning.
Corinthian now has to wait for 21 days before drawing down on funds related to the Title 4 student loan program made available by the department, up from 24-72 hours earlier, the company said in a regulatory filing. (http://1.usa.gov/1qvpC6z)
The ED department notified Corinthian on June 12 about some information it was yet to provide and placed all its schools under the "Heightened Cash Monitoring 1" (HCM1) payment method.
HCM1 requires a company to provide the department ED with documentation of students' eligibility for the Title IV program funds along with disbursing funds to eligible students.
The department had asked Corinthian in January for information about its student placement results, attendance and grade changes for some prior periods.
Corinthian said it has sought relief from the 21-day wait. The company's cash flows will not be sufficient to meet its obligations if it cant find alternative financing.
The college operator has been exploring strategic options and seeking alternative sources of capital since it breached some debt covenants.
The company has also come under fire from regulators and consumer watchdogs about some practices relating to student loans.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Joyjeet Das)