Submitted To The Tribune
RALEIGH – Saint Augustine’s University announced Tuesday that it will initiate a voluntary Chapter 11 restructuring process. This court-supervised process will enable the university to organize its financial affairs.
SAU will continue to operate throughout the process, and a plan of reorganization is being developed to be submitted to the Court outlining its path forward. SAU enters this process with the support of its primary lending partner, Self-Help Ventures Fund, demonstrating confidence in the university’s future.
“Chapter 11 provides a comprehensive path to address our financial challenges and move forward with a stronger foundation,” the board of trustees said in a statement.
SAU also confirmed it will not continue litigation related to its accreditation status, which will conclude effective May 15. After careful evaluation, the board determined that continuing litigation would not be a prudent use of resources. SAU will instead focus on supporting students through teach-out agreements, developing nondegree certificates and apprenticeship programs, and building a pathway toward reaccreditation. The institution reached this conclusion in cooperation with its accreditor, SACSCOC, to ensure impacted students were able to graduate from an accredited institution.
As part of this broader transition, interim president Jennie Ward-Robinson has stepped down, and Verjanis A. Peoples has been named interim president. SAU will work collaboratively with stakeholders, including creditors, donors, alumni and community partners, to provide meaningful opportunities for supporters of the institution to contribute and play an active role in its continued progress and success.
To read a list of Frequently Asked Questions about the university’s status, visit st-aug.edu/sacscoc-updates/.
