A judge heard objections in Mid-Continent University's petition for bankruptcy. The university decided in June to put the campus up for sale. Now a judge needs to sign off on the realtor: Bunch Brothers Auction and Realty Incorporated.
Mid-Continent Vice President of Finance Tim Walker and his legal counsel appeared in court to work out the last-minute objection. Walker says they chose Bunch Brothers because of their proposal, listing the property for more than $4 million. The university's bond holder, Huntington Bank, out of Cincinnati, filed an objection to using Bunch Brothers.
The judge said the objections were valid. He asked both groups to try and work it out before another hearing. Roy Bunch with Bunch Brothers says Huntington thinks they've got the university priced too high. Bunch says Mid-Continent is a valuable asset and shouldn't be thrown away at a low asking price.
"We think it'll be a better deal for everyone if there's room to negotiate room to either A) continue as a university or B) continue as another facility." says Bunch.
As for who would pay the asking price for the campus, Dr. Keith Roach says Summit University — which is in the preliminary phases of starting a new school — is interested. Summit University's board consists of Roach and four others who all have Mid-Continent ties. Roach says they are in the beginning phases to start the new school. It's a multi-step process, but Roach says buying Mid-Continent University's campus would give Summit the room they need to grow.
"That property, it would be a perfect solution to a problem that we would have, which is we don't have a campus. And that would be a great campus, and we know that campus and know the people who've operated that campus." says Roach.
Roach says Summit University is a nonprofit, and is trying to secure a 501c3 nonprofit tax status. But Roach admits they don't have enough money to buy the university right now.
Tim Walker with the university says they are working with 918 students who are repaying school loans. Walker says they have repayment commitments from students at $1.8 million.
We reached out to Huntington Bank about their objection. A spokesperson says it's not their policy to comment on any litigation.
Mid-Continent University's next bankruptcy hearing is Nov. 5.
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