BioHealth College Inc. Files for Chapter 11 Bankruptcy

by San Antonio Attorney

BioHealth College Inc., which is a for-profit school company operated by Bryman Colleges in California, has filed for Chapter 11 bankruptcy protections.

It is unclear what would be the consequences of the filing. However, it would often lead to a school’s suspension to obtain federal educational funding. Without the aid, most colleges cannot make it through.

In January 2013, BioHealth College took over the Everest College campuses in Los Angeles, San Francisco, San Jose, and Hayward from Corinthian Colleges and changed their names to Bryman. Before this, BioHealth run a medical-training school in San Jose.

In an out of the ordinary deal, Corinthian gave BioHealth $2.3 million to take possession of the campuses, based on a filing with Securities and Exchange Commission.

According to local reports in May 2014, the San Jose campus closed briefly due to a conflict with its property owner. BioHealth owed $80,000 to its landlord, but the two agreed to reopen the campus within days.

The company was set to appear before the court in San Jose on Monday.

BioHealth’s website says that its CEO Sam Shirazi founded a company named Computer Training Academy Inc. in 1990. The company was eventually sold to Corinthian Colleges a decade after.

He launched BioHealth College in 2003. The education specializes in biotechnology technician and pharmacy technician courses. By 2012 it had 192 students. Currently, BioHealth College and Bryman San Jose shares a campus.

The four Bryman campuses offer diploma programs in massage therapy, dental assistant and medical care insurance billing and coding. Last year, the tuition was between $16,000 and $18,000. During the previous school year, students obtained more than $9,000 in federal student loan to pay for the tuition.

Court filings show that BioHealth has less than $50,000 in assets and declared debts between $1 million to $10 million.

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