Bankruptcy Judge Approves Lambuth Lease
A federal bankruptcy judge has approved a lease between the University of Memphis and Lambuth University for access to the West Jackson campus. The decision was made during an emergency hearing, Thursday morning. Since Lambuth is currently in Chapter 11 bankruptcy, a judge must approve all agreements and sales related to the property. One of Lambuth’s largest creditors, Radian Asset Assurance, objected to the lease, stating that it did not provide proper insurance provisions, or additional income for the debtors. The judge agreed, and amended the lease to include insurance procedures, allowing the lease. The lease terms will be in effect for one year. University of Memphis officials testified that they plan to only use seven of the 22 buildings on campus. However, they will maintain all of the structures. University of Memphis staff members are said to begin cleaning the campus this Saturday.
