The General Board of the African Methodist Episcopal Church has announced that it is forgiving $4 million in debt owed to the board by historically Black Morris Brown College in Atlanta.
In 2002, Morris Brown College lost its accreditation due to an unstable financial position. It filed for bankruptcy in 2012. 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 college emerged from bankruptcy in 2015. Yet, due to the fact that the college is not accredited, enrollments remain very low. The college reports current enrollments of 35 students. Before it lost accreditation, enrollments were as high as 2,700 students.
The elimination of $4 million in debt will further strengthen the bottom line of the college which is seeking accreditation from the Transnational Association of Christian Colleges and Schools. The college has stated that it hopes to be listed as a candidate for accreditation later this year.
“An integral part of the accreditation process is getting through our audits, and that debt was hindering the audits, so this forgiveness definitely affects the accreditation process in a positive way,” said Morris Brown College Interim President Kevin E. James.
