The future of Intueri Education Group is hanging in the balance as an Australian regulator threatens to sanction the vocational education provider or even cancel the registration of two of its Australian training organisations.
Intueri said it would fight the audit review by the Australian Skills Quality Authority that found Online Courses Australia and Conwal & Associates had failed to meet standards, primarily relating to admissions procedures, assessment practices and learner support resources.
Intueri disputed some of the authority's concerns, and said other issues could be remedied.
But the company took a hammering when its shares resumed trading today, losing almost 90 percent of their value, as the schools account for a third of Intueri's revenue and two thirds of its profit..
"Intueri believes cancellation of registration would be unwarranted, particularly for Conwal, which represents 95 percent of Online Courses Australia Group's revenue," it said in a statement to the market.
Intueri said it expected to continue operating its Australian businesses as a going concern.
But it warned its ability to comply with future banking covenants was now less certain, although the bank supported its planned response to the audit.
Intueri was also unable to confirm its full-year profit forecast for the year ending December.
The company said early last month that it was expecting its Australian online business to boost its revenue by $AU6 million this year.
It was also expecting a backdated pay-out of $AU4.3m for last year.
Intueri said it was seeking confirmation of current funding and the outstanding 2015 payments.