JACKSON, Tenn. (AP) - The Lambuth University Board of Trustees has voted to file for Chapter 11 bankruptcy.
Board Chairman Mike Keeney said in a news release that the school has been trying to sell its assets to settle its debts. But with debts remaining and time running out, the board decided to ask for an expedited bankruptcy plan.
The 168-year old, United Methodist campus officially closed on Thursday.
It has about $10.4 million in debt.
On Thursday, trustees also voted to accept a proposal from a group of stakeholders to sell the campus for $7.9 million, according to The Jackson Sun. However, there is not a signed letter of agreement.
Local purchasers plan to turn the campus over to the state Board of Regents for a satellite campus of the University of Memphis.
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