Saint Augustine's University files for Chapter 11 bankruptcy

RALEIGH, N.C. (WTVD) -- Saint Augustine's University in Raleigh has filed for Chapter 11 bankruptcy, according to documents obtained by ABC11 Tuesday.

The university reported owing between $50 million and $100 million to creditors, according to those filings. In a statement, the school described the move as a "voluntary bankruptcy filing" and said it hopes to "strengthen its financial foundation" over the long term.

A spokesperson also said the university will no longer continue litigation related to its accreditation status, marking a significant shift after more than two years of legal efforts to maintain that status.

"After careful evaluation, the Board determined that continuing litigation would not be a prudent use of resources," the university said in its statement. "SAU will instead focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation."

Financial records show the university estimates it has between 200 and 999 creditors, with assets valued between $100 million and $500 million. The filings also indicate the school owes $14.4 million to the Internal Revenue Service.

The university confirmed that interim President Dr. Jennie Ward Robinson has stepped down and is being replaced by Dr. Verjanis Peoples as interim president.

Saint Augustine's had previously won an injunction in August allowing it to maintain accreditation and proceed with the fall semester.

SEE ALSO | Student used cellphone to record video up teachers skirt during class in Wake County: Warrants

Make sure to download the ABC 11 mobile app | ABC11 North Carolina Apps for Connected TV, Mobile News, Echo