Morris Brown College, the embattled school that has served thousands of first-generation students, is on the cusp of settling its more than $30 million debt, regaining accreditation and revamping its academic program, officials said Saturday.
“We may be all the way home in 24 months,” said Renardo Hicks, general counsel for the college.
The federal bankruptcy court has given preliminary approval to a school plan to sell off three buildings, including the Middleton Twin Towers dormitory, the student center and the post office. The plan also calls for development of other school property in partnership with private developers to raise $12.5 million to settle with creditors who hold $34 million in outstanding debt. The court is expected to sign off on the plan on Dec. 20.
Moreover, the African Methodist Episcopal Church with which the school is affiliated, has bought another $7 million of Morris Brown’s debt from one of the larger creditors, which the school will repay on much more favorable terms, Hicks said.
Morris Brown, which filed for bankruptcy in August 2012, turned down a $10 million proposal from the city of Atlanta that would have gotten it out of debt and unsuccessfully pursued a more lucrative $20 million deal, will then be in a position to regain its accreditation in 12 to 18 months because it will be current on its financial obligations, he said.
The school currently has “just short of 50 students” and 15 faculty members, Hicks said.
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