A Resurrection Plan for Morris Brown College

morris_brown_college_campusIn 2002, Morris Brown College, a historically Black educational institution in Atlanta, lost its accreditation due to an unstable financial position. The loss of accreditation meant that students at the college could no longer qualify for federal financial aid. Since that time, the college has struggled to remain open. Enrollments have dropped from 2,500 to about 50 students. Much of the campus is in disrepair and many of the college’s buildings have been boarded up.

In 2012, the college filed for bankruptcy. Chapter 11 of the U.S. Bankruptcy Code offers protection to businesses who are unable to pay their debts. The code gives them time to submit a reorganization plan and protects their assets during the process.

Now the college has filed a reorganization plan with the bankruptcy court. Under the plan a limited liability corporation would buy some of the college’s property and assume some of its outstanding debt. Some $7.5 million would be used to pay off debt and another $7.5 million would pay bond holders of the properties being purchased from the college. In addition, $5 million would be available for operating costs that hopefully would allow the school to regain its accreditation.

Representatives of the college will appear in court on August 1 to defend the reorganization plan which must be approved by the judge in charge of the bankruptcy proceedings.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Yale Issues Formal Apology After Research Finds Historic Ties to Slavery

"Today, on behalf of Yale University, we recognize our university’s historical role in and associations with slavery, as well as the labor, the experiences, and the contributions of enslaved people to our university’s history, and we apologize for the ways that Yale’s leaders, over the course of our early history, participated in slavery," says Yale University President Peter Salovey, and Josh Bekenstein, senior trustee of the Yale Corporation.

Kean University Establishes New Center for Africana Studies

“This new center epitomizes the university’s commitment to equity and to serving our state, particularly our urban communities,” said Kean University president Lamont Repollet. 

Pew Research Center Provides Insight into Share of Black-Owned Businesses in the United States

Through analyzing data from the United States Census Bureau and the National Science Foundation, the Pew Research Center found that Black-owned businesses make up 3 percent of companies and earn 1 percent of gross revenue in the United States.

Martin Lemellle Appointed the Eleventh President of Grambling State University

Dr. Martin Lemelle has been serving as executive vice president and chief financial officer at the Maryland Institute College of Art.

Featured Jobs