Mid-Continent can list university campus; will file financial plan
Mid-Continent University was back in bankruptcy court Thursday, and the university can put the campus up for sale.
It was one of three motions the judge heard in court. Before Mid-Continent lists the campus, it has six days to file an agreed order with the court.
The order will outline exactly how the campus will be put up for sale — from full disclosure of any offers on the property to specifics on cash or credit offers and commission — but that was not the only thing decided in court Thursday morning. The judge listened to a motion to dismiss the case entirely.
The United States Trustee Program, who handles bankruptcy cases, filed a motion to dismiss the case or convert the Chapter 11 bankruptcy case to a Chapter 7.
Mid-Continent filed an objection. The case is still classified as a Chapter 11, which means Mid-Continent can, for now, continue operating as a university and working with students to collect their debt.
If it’s changed to a Chapter 7, all Mid-Continent’s debt would be in the hands of the U.S. Trustee Program and university operations could cease. Tim Walker with Mid-Continent and his legal team were in court Thursday. The judge gave them 60 days to file a reorganization plan before he makes a decision on the motion in January.
The plan is supposed to outline how Mid-Continent will get money to pay back creditors and when. The plan will also include how to pay back faculty, and staff are suing for vacation and benefits. With $11 million owed from student debt, Walker believes today was beneficial for the school, because Mid-Continent can continue pursuing that money.
Walker said they have collected $450,000 in cash from students so far. The judge also granted a motion to put the school’s library and sports equipment up for sale. Walker said the board would meet Thursday night to decide how to do that.
Mid-Continent will be back in court Jan. 21.