St. Gregory's University (SGU) is now cataloging its belongings to begin the process of paying off its outstanding debts.

St. Gregory's University (SGU) is now cataloging its belongings to begin the process of paying off its outstanding debts.

Brother Damien Whalen, currently serving as the Executive Administrator of SGU, in a Facebook post addressed to SGU alumni, confirmed that SGU has filed for Chapter 7 bankruptcy, and “a federal court-appointed trustee is now in control of the university's assets.”

It is likely that the university assets will all be sold at some point, he said.

“What ultimately will happen is largely unknown at this point,” he said, “but I am working closely with the bankruptcy trustee and his first priority is to protect the value of the university assets, as well as satisfying legitimate claims of any creditors.”

Whalen said the university buildings, grounds and equipment, etc., comprise their own corporation that is separate from the abbey, the Mabee Gerrer Museum of Art and Father Paul Zahler's children's programs like Camp Benedictine, which operate under the umbrella of Home Integration, Inc.

“Fr. Paul's program, the museum and the abbey will remain in operation regardless of what happens to the university,” he said.

Watch for updates.