Shares in education provider Vocation have jumped 38 per cent after the scandal hit company completed a settlement with the Victorian education department.
Vocation will repay $7.26 million to the Victorian Department of Education and Training over the next 18 months, less than the $8 million the company flagged several months ago.
The settlement relates to the withdrawal in 2014 of $20 million in government funding, and subsequent findings of substandard practices in two of its training businesses.
Vocation has already had to withdraw around 1,100 student qualifications.
The settlement amount had been fully provided for in the company's 2014/15 financial year accounts, Vocation said on Friday.
It made a loss of $300 million in the year.
Vocation shares gained 3.7 cents, or 37.8 per cent, to 13.5 cents on news of the completed settlement, their highest value in four months.
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.
It has since had a change of management and undergone a massive restructuring of its business.
The firm is also facing three class action suits.
Vocation also said on Friday its registered business Learning Verve had been found to be compliant in an audit by the Australian Skills Quality Authority.
Vocation is targeting a return to profitability within three years.
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