Saint Augustine’s University (SAU) announced a significant development in its Chapter 11 reorganization following a November 10 hearing in the U.S. Bankruptcy Court for the Eastern District of North Carolina. Following a unanimous decision on November 7 by the University’s Board of Trustees to request that the Court appoint Malcomb Coley as Chief Restructuring Officer (CRO), the Court granted the Board’s request.

The Board’s action reflects its commitment to pursuing experienced restructuring leadership and a broader evaluation of the University’s financial and strategic options.  The appointment marks an important step in the University’s efforts to address its financial obligations while pursuing a sustainable future consistent with its historic educational mission.

“The Board of Trustees made a deliberate decision that Saint Augustine’s University deserves more than a plan to resolve its financial obligations. It deserves a meaningful opportunity to build a sustainable future,” said Sophie Gibson, Chair of the Saint Augustine’s University Board of Trustees. “We unanimously supported Mr. Coley’s appointment. We recognize the gravity of this moment, but we also recognize our responsibility to the generations who built this institution and those who deserve the opportunity to follow.”

The Board’s decision followed a careful assessment of the restructuring alternatives available to the University. Although SAU had been prepared to advance a reorganization plan, trustees determined that resolving the University’s financial obligations, while essential, would not alone ensure its long-term viability as an institution of higher education.

“Saint Augustine’s University has a remarkable history and an important place in the fabric of North Carolina,” said Malcomb Coley, Chief Restructuring Officer. “My immediate priority is to conduct a thorough assessment of the University’s financial position, engage key stakeholders, and evaluate every credible opportunity for restructuring, investment, and strategic partnership. I appreciate the confidence the Board of Trustees and the Court has placed in me and look forward to working collaboratively to identify the strongest path forward.”

The Court also granted SAU a 60-day extension, establishing January 8, 2027, as the new deadline to file its plan of reorganization and disclosure statement. The extension provides additional time to assess potential exit financing, investment opportunities, strategic partnerships, asset strategies, and other restructuring alternatives.

Coley brings extensive executive, financial, and philanthropic experience, including familiarity with bankruptcy and institutional restructuring. His connection to higher education includes previous service as a professor at Saint Augustine’s University, four years as a member of the Board of Trustees of the University of North Carolina at Wilmington, seven years as a member of the Board of Trustees at Queens University of Charlotte, and record-breaking fundraising on behalf of Johnson C. Smith University.

Under the Court-approved arrangement, Coley will lead the University’s restructuring efforts and exercise the decision-making authority relating to the Chapter 11 filing established by the Court pursuant to Section 1104 of the U.S. Bankruptcy Code.

During the November 10 hearing, U.S. Bankruptcy Judge David Warren acknowledged the importance of specialized restructuring expertise as the University works to identify a viable path forward. The appointment also received support from the bankruptcy administrator and SAU’s debtor-in-possession lender, Self-Help Ventures Fund.

“Our history is too important, our mission too meaningful, and our responsibility too great to settle for anything less than a thorough examination of what is possible for Saint Augustine’s University,” Gibson added. “This is not simply about navigating a financial crisis. It is about making responsible decisions today that give this institution the strongest possible opportunity for tomorrow.”

The University’s next Chapter 11 hearing is scheduled for January 11, 2027.