Lambuth Accepts Stakeholders’ Deal
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At 6:10 p.m., Thursday, the Lambuth University Board of Trustees announced it accepted the proposal by local stakeholders to buy the campus for $5.9 million. According to the statement, “additional work needs to be done to reach a definitive agreement, but the Lambuth Board hopes to complete that agreement in a timely manner which will enable the University of Memphis to open a branch campus in the fall of 2011.” In the same statement, the Board made another big announcement. It has decided to file bankruptcy. “Throughout the negotiation process, our focus has been to sell our assets at liquidation value to settle all debts and obligations. After many attempts to do so, however, debts remain. Therefore, the Board decided to accelerate the filing of a Chapter 11 bankruptcy petition to allow for reorganization of debt,” said Mike Keeney, Chairman of the Board. Board members began meeting early Thursday morning, at the same time JEA crews began unhooking utilities at the campus. Lambuth currently owes more than $10 million to creditors. Records show Lambuth owes more than $400,000 to JEA in past bills. “Lambuth is a water, waste water, electricity, gas, internet and phone service,” said Bruce Dorris, Commercial Relations Mgr. “They are a full fledged customer.” Though utilities shutdown was scheduled to resume Friday morning, JEA announced late Thursday evening that would not continue. “In light of the latest news related to the transition of ownership and impending bankruptcy, we feel that it is in everyone’s best interests to delay service termination efforts and begin discussions related to requirements for service to be maintained,” said Sam D. Turner, Jr.. Sr. Manager of Marketing and Communications. Thursday marked the final day Lambuth would serve as an institute of higher learning in West Tennessee.
