The fate of St. Gregory's University (SGU) campus is making its way through both Federal Bankruptcy Court and Pottawatomie County District Court.

The fate of St. Gregory's University (SGU) campus is making its way through both Federal Bankruptcy Court and Pottawatomie County District Court.

When SGU filed for Chapter 7 in Federal Bankruptcy Court in December, it put a stop to an attempt by Citizen Potawatomi Nation (CPN) to claim its assets — at least temporarily. CPN was to be awarded the campus if the university defaulted on a certain agreement with the tribe.

A hearing was held Tuesday after Attorney Courtney Powell, representing Citizen Potawatomi Community Development Corp. (CPCDC), filed a relief-of-stay to allow a related civil case currently in Pottawatomie County District Court to continue.

A relief-of-stay means that a creditor — in this case, CPN — could foreclose on a property as the stay is lifted; a stay is automatically imposed through the bankruptcy process, which prevents creditors from taking possession until the case is decided.

United States Bankruptcy Court for the Western District of Oklahoma Court Clerk Grant Price said Tuesday's motion failed to state cause, and that Justice Sarah A. Hall granted Powell one week to amend the motion. A new court date has yet to be determined.

CPN's civil case

CPN filed litigation against SGU for defaulting on an agreement to maintain its accreditation and fulfill 60 full scholarships in trade for $5 million CPN doled out to the struggling institution.

CPN Chairman John “Rocky” Barrett filed a notice of default mid-November after the school announced it would close.

Mid-July 2015, an agreement was struck between CPN, SGU and Benedictine Fathers of Sacred Heart Mission, Inc. (the Abbey). In it, CPN paid SGU $5 million to use for “ongoing operational needs, fund strategic plan development, fundraising activities and recapitalization efforts,” according to the District Court filing. Another condition was that SGU must pay off a Note executed by SGU as debtor to First National Bank & Trust Company (FNB), as well as pay CPN's and FNB's costs and fees of the transaction.

As repayment for CPN's funding, SGU agreed to provide 60, four-year, full scholarships over a six-year period, beginning with the 2015 Fall semester.

In the event of default, according to the District Court filing, would be “the transfer of SGU and all of its assets, including the buildings, improvements and the Abbey land upon which it sits,” as well as other acquired assets like parking lots, sidewalks, fixtures, etc. Everything, including a lengthy list of personal property such as supplies, equipment, inventories, data and software were to be given over to CPN within 60 days.

Signatures on the agreement belonged to CPN's Chairman Barrett; Abbot Lawrence Stasyszen, SGU Chancellor and representative of the Abbey; and then-president of SGU, D. Gregory Main.

Watch for updates.