15-05-2025
Bacone College ordered to liquidate assets
A U.S. bankruptcy judge ordered Bacone College assets be liquidated to pay outstanding debts.
Judge Paul R. Thomas' ruling Tuesday effectively ends the 145-year history of the Native American college.
Bacone College Acting President Leslie Hannah said this is a sad ending to the college.
'My understanding is this is the death of Bacone,' Hannah said. 'Ron (Brown, attorney representing the college) told me to not pay any more bills, to not write any more checks. To cease all operations.'
Bacone's demise stems from a lawsuit, filed in 2021, alleging the college owed $1,038,500 to MHEC LLC, doing business as Midgley-Huber Energy Concepts.
Bacone had attempted to reorganize its debts under bankruptcy laws in order to continue as a higher eduction facility. Thomas' order changed Bacone's status from Chapter 11 to Chapter 7.
The United States Courts website says Chapter 11 bankruptcy 'generally provides for reorganization.' The website says Chapter 7 'provides for 'liquidation' — the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.'
Liquidation is the process of bringing a business to an end and distributing its assets to claimants.
Hannah said he received a phone call Tuesday morning from Ron Brown, a bankruptcy attorney representing Bacone, telling him of the ruling.
'Ron said 'I've got bad news and maybe some good news,' Hannah said. 'The way he said it it was kind of a joke. I've been talking with him about it and I said 'I'm exhausted by all of this.'
'He said 'Well the good news is maybe you can finally get some rest. Pretty much it's over.''
Bacone College, formerly The Indian University, was founded in 1880 to educate Native American students.
The history of the college on its website that Muscogee (Creek) Nation donated land to the American Baptist Church and the American Baptist Home Mission Societies to establish Bacone College.
Bacone suspended classes for the Spring 2024 semester except for the students that were set to graduate that semester. The last full semester was the fall of 2023.
Judge Thomas said in his ruling, 'It is hereby ordered that the motion to convert case to Chapter 7 filed by MHEC is granted, and this case is hereby converted to Chapter 7.'
Bacone attempted to sell 70 of its 160 acres in 2024 to satisfy its debt bending from the lawsuit. Hannah said the sale fell through.
An auction and a sheriff's sale of the college were scheduled for 2023, but both sales were called off by MHEC.
