A community remains shocked after a famous post-secondary educational institution has closed its doors due to debt and lack of funding. Educators here in Connecticut may be familiar with St. Gregory’s University, the only Catholic university in Oklahoma, which has recently filed for Chapter 7 bankruptcy. It is hoped the filing will help the school administration to maintain some of the heritage associated with the 143-year-old school.
Students and staff alike learned in Nov. 2014 that the school would be closing down at the end of the current semester due to a lack of funds required to keep the school operating. The school had previously applied for a loan totaling some $12.5 million from the U.S. Department of Agriculture, but unfortunately their loan application was denied. The Executive Administrator of the school later reported that St. Gregory’s would be filing for Chapter 7 bankruptcy.
Nearly 600 full-time students and over a hundred faculty members are now in the process of transferring to other schools. A bankruptcy trustee has been given control over the school’s assets in preparation for liquidation. While these assets will be sold off to pay down debts, the school’s administration has ensured the community that the historic abbey and museum connected to the university will remain open.
Filing for Chapter 7 can be a difficult choice for a business that has persevered for over a century, but Connecticut business owners understand it can also be a long-term beneficial solution. By paying down debts and satisfying creditors, the school’s ownership is able to preserve the legacy of their university. In this way, they will be able to continue serving their community in some form, even after the school has closed.
Source: kfor.com, “St. Gregory’s University files for Chapter 7 bankruptcy“, Feb. 20, 2018