TYLER, TX (KLTV) - The oldest two year college in Texas was in bankruptcy court Thursday afternoon.
Lon Morris College in Jacksonville filed for bankruptcy earlier this week. Thursday, attorneys met at the Bank of America building in downtown Tyler for an emergency hearing.
Bridgepoint Consulting, LLC is working with the college to provide management and restructuring services.
Thursday, Dawn Ragan who is serving as the chief restructuring officer, says the college started to expand right before the 2008 economic crisis.
The student population started to increase at that time and actually tripled by 2010.
School officials say the administration began to lose more money when they offered unfunded scholarships to students.
The college did have 130 employees, but after the recent furlough they are downtown eleven. Ragan said they will need to hire more as the fall semester approaches.
Thursday, the judge granted them a $750,000 loan, which Ragan said will hold them over until the September tuition rolls in.
The college does plan to open as scheduled in the fall. Students have been consolidated to help lower utility bills. Other changes are being made to save money wherever the college can.