Clark Atlanta University and the African Methodist Episcopal Church have filed objections to the sale of Morris Brown College.
The AME Church, which has loaned Morris Brown millions of dollars to continue operations, claims that a $14.6 million purchase offer is not enough to cover the $18.6 million in debt the college owes it, according to court documents filed this week. The church also charges that the proposed sale does not specify how or when the net proceeds will be distributed.
Morris Brown representatives are scheduled to appear in bankruptcy court on Thursday for a hearing seeking approval for the property sale to Invest Atlanta, the city’s development authority, and Friendship Baptist Church, one of two historic churches that were relocated to make room for the new Falcons stadium. The objections, filed with the bankruptcy court, will also be considered during the hearing.
Morris Brown filed for bankruptcy in 2012 facing debts of about $30 million. The school has been kept afloat mainly by the AME Church, which is the college’s main creditor.
A separate objection filed by Clark Atlanta University involves a longstanding agreement between the two schools. Clark Atlanta has laid claim to 17 acres of the property that were long ago gifted to Morris Brown on the condition that it be used for educational purposes. If the property is used for another purpose, it would revert back to Clark Atlanta.
The objection charges that a portion of this property would be purchased by Invest Atlanta, and does not take into consideration the agreement between the two colleges. If the court grants the sale, Clark Atlanta’s interest in the property would be “directly and irreparably inured,” the objection claims.
About the Author
