Phillips University Bankruptcy

Phillips Bankruptcy Case
Phillips University Chapter 11

Marshall Building on former Phillips University Campus

When Phillips University encountered financial difficulties in the 1990's, it came to Mitchel DeClerck and Larry Lahman in search of a light at the end of the tunnel. Phillips University was a private, coeducational institution of higher education located in Enid, Oklahoma, from 1906 to 1998 affiliated with the Christian Church (Disciples of Christ). It included an undergraduate college and a graduate seminary. As a result of declining enrollment, Phillips could not meet its financial obligations, pay its staff and expenses and continue to provide the quality liberal arts education it had for decades.

Consequently Phillips filed Chapter 11 bankruptcy on April 1, 1998, and closed its doors four months later when anticipated major gifts did not materialize.

As a part of its bankruptcy, its former campus was sold in June 1999 to Northern Oklahoma College, a public college, for $6.1 million. Northern Oklahoma College, based in Tonkawa, Oklahoma, phased the entire property into use as a satellite campus that is now a vibrant institution for higher education in Enid and Northwestern Oklahoma.

As a result of this sale and its other assets, Phillips was able to to pay all of its debts leaving over $3 million in funds for the formation of the Phillips University Legacy Foundation, which awards annual scholarships and provides leadership training to undergraduate students attending Disciples of Christ-related colleges and universities.

The bad news is that Phillips no longer exists as a university. The good news, however, is that its void was filled by Northern Oklahoma College with much higher enrollment at a much lower cost to its students as a state supported college.

As a part of Phillip's bankruptcy, it was able to transfer its academic records and facilitate a method allowing its thousands of alumni and former students to continue to access their academic transcripts. Moreover, from 2002 to 2015, the Legacy Foundation awarded 367 scholarships to 136 students for a total of $1,116,250.00 as well as administering 14 Leadership Development Conferences.

Indeed a mixed result with the disappearance of a respected liberal arts university but on balance considering the circumstances, one acceptable to Phillips and beneficial to its alumni and former students as well as the college age residents of Enid and Northwestern Oklahoma.

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Phillips Bankruptcy Case Phillips University Chapter 11

Phillips Bankruptcy Case
Phillips University Chapter 11