Vocation in talks to resolve legal action

Troubled education provider Vocation hopes it might be able to settle three class actions outside the courtroom.

The legal actions were launched in reaction to the company's massive share price slide after the Victorian government withdrew $20 million in funding amid criticism of the education services provided by Vocation.

Chief executive Stewart Cummins says Vocation and the parties behind the class actions have agreed to work together to try and mediate all three disputes as soon as practicable.

"The existence of the three class actions casts a dark cloud over the company, so I am pleased by the plaintiffs' willingness to seek to schedule an urgent mediation," he said in a statement on Monday.

But Mr Cummins noted that there was no certainty a settlement would be reached during the mediation process.

Meanwhile, Vocation will launch a private placement of shares and options to help raise vital money so it can continue operating.

It hopes to complete the equity placement with institutional and sophisticated investors over the next seven days.

However Vocation can't use any of the money raised towards the settlement of the class actions without the approval of its lenders.

Also, Vocation has negotiated to receive $4.2 million in cash from some of the founders of Vocation's predecessor companies.

Vocation's shares remain suspended from quotation on the Australian share market and are expected to resume on November 30.

The company has lost more than 95 per cent of its market value since October 2014, when it announced the loss of Victorian government funding for substandard practices in some of its training businesses.

Vocation posted a $300 million loss for 2014/15, and has since had a change of management and massive restructuring of its business.

In June, it announced a turnaround plan with a target of a return to profitability within three years.

Vocation shares last traded at 12 cents.