ATLANTA, Aug. 30 (UPI) -- Morris Brown College in Atlanta, a 131-year-old institution affiliated with the African Methodist Episcopal Church, has filed for bankruptcy.
School officials hope to avert or delay foreclosure on property securing $13 million in bonds issued through the Fulton County Development Authority, The Atlanta Journal-Constitution reported. Morris Brown listed a total of about $30 million owed to 200 creditors in its bankruptcy filing.
"The Chapter 11 should prevent the foreclosure, because it is an automatic stay," said Ann Aaronson, a Morris Brown lawyer. "We are hoping to work out an agreement with the bondholders to resolve their debt. And we would like to do so as quickly as possible."
Among the largest unsecured creditors are Morris Brown employees, who have been working without pay. Gloria Anderson, a chemistry professor, is owned more than $200,000 in back salary and Jacqueline Pollard, the director of institutional advancement, $205,000.
"It depends on your commitment and dedication to the college," Pollard said. "I have faith that I will receive my money. I don't know when, but I will get it."
Morris Brown has had financial problems for more than 10 years. Former President Dolores Cross and Parvesh Singh, the financial aid director during her tenure, pleaded guilty in 2006 to embezzling federal funds intended for student aid and using them for ineligible purposes.