Posted 3:46 am Tuesday, May 08, 2012
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Lon Morris Seeks Help Reorganizing
By KELLY GOOCH
Staff Writer
Lon Morris College plans to seek assistance from a reorganization firm in order to secure long-term stability.
Staff Writer
Lon Morris College plans to seek assistance from a reorganization firm in order to secure long-term stability.
Board members at the private two-year, faith-based liberal arts school met with faculty and staff this week about the school’s financial problems and, after visiting with several attorneys, decided it would look to employ a reorganization firm, which could help it work through its financial issues. An official contract had not been signed as of Monday evening, and several firms were being looked at.
“What they will do hopefully is go to some of our creditors who are holding endowments and free up some endowments but also … we have assets we can sale to help alleviate this problem,” said Dr. Jack Nelson, a member of the board’s executive committee.
“What they will do hopefully is go to some of our creditors who are holding endowments and free up some endowments but also … we have assets we can sale to help alleviate this problem,” said Dr. Jack Nelson, a member of the board’s executive committee.
“They will come in look at the books and say ‘This is profitable. This is not’ (or) ‘We can renegotiate these for you.’”
In the meantime, he said Lon Morris hopes to be able to get through the summer and has worked to get refinancing of some long-term loans so it can immediately save money.
“We would really like for Lon Morris to stay. That’s what our long-range goals are and, we’re working toward that … We’re optimistic moving forward. We expect to be in operations in the fall and expect to get through the summer,” Nelson said.
Lon Morris spokeswoman Breezy Lake echoed Nelson, saying the board is hands-on and ready to work on the situation.
“Things are looking positive. … They’re really optimistic about what’s going to happen,” she said.
In the meantime, he said Lon Morris hopes to be able to get through the summer and has worked to get refinancing of some long-term loans so it can immediately save money.
“We would really like for Lon Morris to stay. That’s what our long-range goals are and, we’re working toward that … We’re optimistic moving forward. We expect to be in operations in the fall and expect to get through the summer,” Nelson said.
Lon Morris spokeswoman Breezy Lake echoed Nelson, saying the board is hands-on and ready to work on the situation.
“Things are looking positive. … They’re really optimistic about what’s going to happen,” she said.
Lon Morris, which has about 150 employees, including seasonal workers, has had its fair share of financial struggles in recent months.
Employees have received late paychecks about four or five times in the past year. In December, Lon Morris administrators and several faculty and staff deferred paychecks so their colleagues could receive the money they were owed.
Officials have said the issue arises because of cash-flow problems.
Employees have received late paychecks about four or five times in the past year. In December, Lon Morris administrators and several faculty and staff deferred paychecks so their colleagues could receive the money they were owed.
Officials have said the issue arises because of cash-flow problems.
Lon Morris does not receive tax money like state schools and relies on tuition and donations.
Therefore, accounts payable comes in when tuition from government sources arrive, President Dr. Miles McCall has said. He said December and March through July are particularly hard months because students might leave for the holidays or summer still owing money from the previous semester.
“All of our revenue sources are attached to the way the economy is going,” McCall has said. “We have to accept that endowment revenue is down (and) donors can’t give that much.”
David Hubbard, the new executive director of student enrollment and retention services, said last month that Lon Morris is doing everything it can to clean up things that would have disrupted cash flow, and the business office is calling in students to ensure that payment situations are addressed. In the past, the school also pulled back on scholarships, increased tuition and dissolved or combined positions.
Therefore, accounts payable comes in when tuition from government sources arrive, President Dr. Miles McCall has said. He said December and March through July are particularly hard months because students might leave for the holidays or summer still owing money from the previous semester.
“All of our revenue sources are attached to the way the economy is going,” McCall has said. “We have to accept that endowment revenue is down (and) donors can’t give that much.”
David Hubbard, the new executive director of student enrollment and retention services, said last month that Lon Morris is doing everything it can to clean up things that would have disrupted cash flow, and the business office is calling in students to ensure that payment situations are addressed. In the past, the school also pulled back on scholarships, increased tuition and dissolved or combined positions.
