Career Education Corp. To Discontinue Le Cordon Bleu Operations - Quick Facts

(RTTNews) - Career Education Corp. (CECO) announced it will begin a gradual process of discontinuing the operations of its Le Cordon Bleu North America colleges of culinary arts. The company expects to record approximately $52 million to $64 million of restructuring charges related to the teach-out of the Le Cordon Bleu campuses. The impairment charges and severance and related charges will primarily be recorded during the fourth quarter of 2015.

"New federal regulations make it difficult to project the future for career schools that have higher operating costs, such as culinary schools that require expensive commercial kitchens and ongoing food costs," said Todd Nelson, CEO.

The company also announced it has executed an amendment to its agreement with its lender, BMO Harris Bank, which extends the terms of the Credit Agreement to December 31, 2018 and revises certain covenants. The amended agreement provides for a $95 million revolving credit facility.