Saint Augustine's University faces bankruptcy crisis, no students enrolled

RALEIGH, N.C. (WTVD) -- Troubling new details about Saint Augustine's University emerged during a bankruptcy court hearing in Raleigh.

The historically Black university currently has no students enrolled and is considering selling part of its campus to help pay off its debt, according to our newsgathering partners at The News & Observer.

Remaining students were forced to transfer after the school's accreditation expired on May 15.

Saint Augustine's filed for Chapter 11 bankruptcy last month, saying it owes between $50 million and $100 million to creditors. University leaders were in court Wednesday, where they faced questions about how they plan to address the debt.

Officials said the university has just $426,000 in cash on hand.

An attorney for the school said leaders are exploring the possibility of selling a portion of its 105-acre campus, which is valued at about $200 million, to help cover what's owed.

A judge on Wednesday approved a request for Saint Augustine's to borrow $200,000 from the nonprofit loan fund Self-Help Ventures Fund to cover expenses in June.

That is in addition to another $200,000 the university borrowed last month.

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