Yesterday, Chief United States Bankruptcy Judge for the Western District of Oklahoma Sarah Hall was scheduled to hear an amended motion by United States Trustee John Mashburn to use funds “which may constitute cash collateral.”
The St. Gregory's University bankruptcy case continues to proceed through federal court.
Wednesday, Chief United States Bankruptcy Judge for the Western District of Oklahoma Sarah Hall was scheduled to hear an amended motion by United States Trustee John Mashburn to use funds “which may constitute cash collateral.”
According to the filing, Mashburn's need for use of the cash collateral is to fund expenses of administration, preservation and marketing of the assets of the estate.
The hearing was stricken from the docket because nothing was ever filed and the deadline had expired, court staff reported.
A new court date, however, 9:30 a.m. May 23, has shown up on the judge's docket regarding an application for compensation to Mashburn — in the amount of $60,057 for attorney fees and $336.15 in expenses.
Mashburn's job as trustee is to sort out what assets SGU has, in order to find the most feasible way to pay off its many creditors.
Since Citizen Potawatomi Nation has a claimed vested interest in the campus, and in order to avoid spending SGU funds, Mashburn has entered into a Limited License Agreement with CPN to provide preservation services — maintenance and security for the campus — as the case moves forward.
“Trustee has on hand funds in the amount of $265,703.26 from collected accounts receivable, refunds, closing of debtor's accounts, and other receipts, and expects to collect other sums in due course,” the filing reads.
At this time, nothing contained in the motion seeks authorization for Mashburn to use any proceeds of sale of the university campus, the mineral properties or the sale of other assets.
Also, in the court filing Mashburn said — in his efforts to market the campus — he has personally conferred with representatives of three potential purchasers, and is engaged in ongoing discussions.
The court has hired Dakil Auctioneers, Inc., of Oklahoma City, to handle the liquidation of SGU's assets.
Louis Dakil said the process could take quite awhile.
“Eventually (we will handle the auction); it's a ways off,” he said.
More information should become available in the coming weeks, he said.
In the court filing, the listed total value of SGU is $28,500,000 — according to an appraisal done just more than a year ago.
Catch up on previous articles about SGU's closure at news-star.com and continue to watch for updates.