wfn.org | Financial woes force Phillips University closing

["Wilma Shuffitt"<wshuffit@oc.disciples.org>]

Date: August 10, 1998
Disciples News Service
Christian Church (Disciples of Christ)
Contact: Clifford L. Willis
Email: CWillis@oc.disciples.org
on the Web: http://www.disciples.org

98b-49

	ENID, Okla. (DNS) -- Phillips University trustees voted July 31 to 
cancel fall classes and subsequently moved to liquidate the school's 
assets, according to Michael Sohn, Vice President for University 
Advancement.

	While the board has not formally issued the words "Phillips 
University is closed permanently,"  the trustees' actions mean "we're 
done," Sohn said.  

	Efforts are underway to help students transfer to other colleges and 
universities. A two-day "mass advising" session was held Aug. 6-7, 
during which representatives from 26 higher education institutions 
visited with prospective students. The visiting college officials 
helped them select degree programs and determine their transfer 
eligibility. Sohn expressed Phillips' deep appreciation to the other 
colleges and universities. Nine Disciples-related schools 
participated in the relocation event.  
  
	Phillips officials filed Chapter 11 bankruptcy in April to protect 
the university from creditors while it attempted to reorganize its 
debt. Sohn estimated it will take four to five months to liquidate 
the school's assets and move through the bankruptcy process.  
 
	Key to the reorganization plan was a proposal to arrange a 
multimillion dollar bond issue by  Oklahoma City philanthropist 
Gordon Allison. University officials had hoped an initial $700,000 
infusion from the Allison Trust might allow it to remain open. The 
effort failed.
 
	In February, General Minister and President Richard L. Hamm and six 
other church officials visited with administrators "to see if there 
was some way the church could be of assistance." The church's general 
(national) leadership was unable to offer any financial help. In 
recent years, however, two administrative divisions of the church 
have provided funds or offered other forms of aid.

	The Christian Church (Disciples of Christ) does not "run" its 
related institutions of higher learning. While the denomination 
provides modest financial support, the bulk of the schools' revenue 
comes from sources other than the church. In 1997, Phillips received 
$48,523 from Basic Mission Finance. The university was allocated 
$46,900 for this year.

	In addition, there is no mandatory financial accountability to the 
church's general offices. This is the case with all Disciples higher 
education institutions, according to Hamm. Each one  "(including 
Phillips University) has its own board, manages its own finances and 
is a separate legal entity."

	Hamm praised the efforts of university President G. Curtis Jones, 
Jr., and others toward keeping the institution open. "I am very 
grateful for the time, energy and effort expended by Curt Jones and 
other leaders to save Phillips," he said. 

	Jones also lauded the efforts of university supporters during the 
difficult period. "To those that embraced our efforts, we say ‘thank 
you.' A great many people gave their time, energy, heart and soul to 
Phillips University, and it was their faith that sustained us in this 
fight." 

	Hamm called the Phillips closing a "tragic loss," citing its 
contribution of scores of lay and clergy leaders to the denomination. 
He also expressed concern about "implications of the school's closure 
on students, faculty, staff and the city of Enid."  

	The Rev. Dennis Landon, president of the Division of Higher 
Education, St. Louis, said the situation "represents an irreplaceable 
loss to the Christian Church (Disciples of Christ). Through the years 
Phillips has provided a supply of leaders -- ministers and lay people 
-- to this church far out of proportion to its size. Those men and 
women are -- and will continue to be -- Phillips' legacy to our 
common ministry."

	--end--

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