TYLER (December 6, 2012)--A bankruptcy judge in East Texas has set a Jan. 14 sale date for the assets of Lon Morris College.
The oldest junior college in Texas filed for bankruptcy protection in July and on Wednesday a judge in Tyler agreed to allow a Dec. 13 auction date to be pushed back a month.
The judge also authorized the school to borrow as much as $500,000 to help pay auction fees, utilities, insurance and other administrative costs, but capped any initial loan at $150,000.
Fall classes were suspended at the 158-year-old United Methodist complex because U.S. law bars federal assistance for students at schools that file for bankruptcy.
The Texas attorney general's office is investigating how the college spent a $1.3 million endowment.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.