In 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. 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.
The college filed a reorganization plan that was accepted by the bankruptcy court. The plan involved the sale of 26 acres of land to the city for $14.7 million. The land is valuable real estate because it is adjacent to the new stadium being constructed for the Atlanta Falcons of the National Football League.
Under the reorganization plan, Morris Brown College retains ownership of three campus buildings. The college has now emerged from bankruptcy proceedings and will seek to regain its accreditation.
The college announced that 21 students will graduate from Morris Brown in May.