The 158-year-old Methodist college, Texas’ oldest junior college, filed for bankruptcy protection last summer amid a severe liquidity crisis that saw school employees miss three payroll periods and an interruption of the school’s utilities services.
Attorney Hugh Ray III of McKool Smith and Dawn Ragan of Bridgepoint Consulting have guided the school through the bankruptcy process.
“This is an important step in satisfying Lon Morris College’s debts and ensuring former employees are paid for their work in furtherance of the school’s mission,” says Mr. Ray. “Much credit goes to Dawn Ragan for her work with creditors and foundations to get this plan confirmed, and to Judge Parker for his patience and direction during this process.”
The bankruptcy plan was confirmed following a February 4 hearing where Judge Parker praised the work of Mr. Ray and Ms. Ragan, saying he recognized and appreciated the many hurdles that were overcome in order to reach the plan approval stage.
“We always believed that a workable plan could be achieved based on the shared goals of all parties involved,” says Ms. Ragan, who served as the school’s chief restructuring officer. “We could not have accomplished what we did without the support of many people, including the few remaining employees who are continuing the school’s charitable mission.”