Morris Brown College owes employees approximately $3.2 million in unpaid wages, bonuses, and other compensation, reported the Atlanta Journal-Constitution. Court records show that the troubled college, which recently filed for bankruptcy to prevent foreclosure, has not paid its employees since June 11 and owes some of them over $200,000.
In addition to unpaid salaries for the school’s 22 full-time faculty and staff members, a list of the school’s largest unsecured debts included approximately $2 million in utility bills. The school also owes the Robert W. Woodruff Library—which is shared amongst the schools in the Atlanta University Center— $2.4 million.
Morris Brown owes more than $30 million to at least 200 creditors and, according to the Journal-Constitution report, the debt includes a $13 million bond package. When the bonds were issued in 1996, as part of the build-up to the Summer Olympics, administration officials pledged various pieces of property as security.
The bond creditors exercised a call option on Aug. 23 that started the foreclosure process and, without the bankruptcy filing, would have resulted in campus buildings being auctioned off on Sept. 4. The Journal-Constitution reported that the fair market value for the 20 parcels of property owned by Morris Brown—many of which include boarded up and abandoned buildings—is $33.5 million.
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