A university in Chile operated by a subsidiary of Phoenix-based Apollo Group, Inc. has learned that its national accreditation won't be renewed, according to documents filed with the U.S. Securities and Exchange Commission on Monday.
The Santiago, Chile-based arts school, Universidad de Artes, Ciencias y Comunicacion, plans to appeal the decision by the National Accreditation Commission of Chile. If the school is unsuccessful, students won't be able to use government loans and scholarships to pay for studies. About 3,600 students attend the school, Apollo spokesman Chad Christian said.
The school, also known as UNIAAC, generated $27 million in revenue and notched an operation loss of $13 million for the fiscal year that ended August 31, documents show.
About 30 percent of UNIACC’s revenue in fiscal 2011 was derived from some form of governmental assistance impacted by the accreditation decision.
Also, August 31, Apollo Group reported approximately $21 million of goodwill and intangible assets related to UNIAAC. Apollo officials are evaluating how the news will impact the company’s first quarter fiscal results, the filing said.