In another move to save the ailing two year college from complete closure, Dawn Ragan, Chief Restructuring Officer, said the school has filed for voluntary Chapter 11 Bankruptcy. The filing will help stop foreclosure proceedings on some of the campus real estate which include dormitories. The junior college has taken huge steps to save their academic program since falling under the management of Bridgepoint Consulting and is trying to provide a revised fall class schedule while it continues the debt restructuring.
Two weeks ago, shortly after honoring the 1962 men’s basketball team that advanced to the national finals, Lon Morris announced the closure of all school athletics. The board said it is currently trying to help find roughly 300 students in its athletics departments a new home but as of now, the entire coaching staff and student athletes have no idea what their future holds.
Lon Morris is the second school to abandon their athletics department in recent months, following Texarkana College. Texarkana who has just 70 student-athletes said ditching the program would save the school $500 thousand a year and help counter its $3.1 million budget deficit.
Even with the current restructuring efforts, the Board of Trustees believes the only way for Lon Morris to survive is to develop a partnership with another educational institution, one with the financial strength to help weather the storm. The school announced that it hired another large business firm, Capstone Partners, to help in acquiring a partnership deal.
Ragan said in a statement, “Discussions with multiple entities are ongoing, and an initial agreement is expected this summer. A modified academic program that will continue compliance with the SACS accreditation policies is currently being developed for the upcoming academic year. Athletic programs are expected to be eliminated. Students will be notified of applicable options available to them. The College is continuing to work on its financial restructuring efforts, and continues to receive strong support from its faculty and employees, the community, alumni, the Texas Annual Conference of the Methodist Church, and its creditors. We are hopeful that the community and future students will benefit from our efforts to achieve the best outcome for Lon Morris, but recognize that near-term disruptions are inconvenient and inevitable.”