wfn.org | Phillips University reorganizes

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

Date:  April 9, 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-21                

     ENID, Okla. (DNS) -- Phillips University has filed for
Chapter 11 bankruptcy protection in the wake of mounting debts
that left the institution unable to meet its March employee payroll.

     The Phillips administration initiated the filing April 1 at the
direction of the board of trustees, according to G. Curtis Jones, 
Jr., president. 

     "This decision gives us some flexibility in implementing
some major changes at the university," Jones said. "This is a
business decision, a tough one, that will be difficult in the
short-run, but will provide for long-term stability." 

     With the court's approval, Phillips will be allowed to
reorganize its debt to secure interim financing to pay faculty/staff
salaries and meet the school's responsibilities to its creditors. "We
have no intention of walking away from our creditors," Jones said.

     Following a meeting where Jones met with faculty and staff
to inform them of the university's situation, the board of trustees
acted quickly to direct the university to take this step. 

     "I've said from the beginning, a university is a business,"
Jones added. "This should enable us to have a more secure future." 

     Wendell Tolle, Jr., a 1976 Phillips graduate and president
of the Alumni Association, which represents more than 14,000
persons, expressed his support. "We look at this decision as one
that will move the university in right direction to secure its 
future," Tolle said. "President Jones has brought the honest and sound
business sense the alumni have wanted and the university has
needed for years." 

     The board of trustees and the administration adopted a five-year 
strategic plan last year to move the university forward. The
plan focuses on three key areas: enrollment, development and
restructuring. 

      "This action falls into the restructuring part of the plan,"
Jones said. "This will allow us to consolidate our debt and give us
relief on our restricted endowment, freeing up collateral, which
should allow us to secure funding." 

     Jones was called as president by the board of trustees in
April 1996, and inherited more than $4 million in debts. The
campus has been appraised at more than $20 million. 

     Jones and other members of the faculty and staff met with
the student body April 1 to discuss the implications of the Chapter
11 reorganization. "I was impressed by our students," Jones said.
"They took the news and asked intelligent questions." 

     The university will continue its normal day-to-day
operations, including enrollment for next fall. "Whether Phillips
University can continue as a viable institution will depend upon the
support it receives over the next few weeks from its alumni,
students, faculty and staff, the Christian Church (Disciples of
Christ), donors and supporters," according to a statement released
by the board of trustees March 31. 

     Donna Payne, dean of the School of Education at Phillips,
fully supported the board's decision. "It was a wise decision," said
Payne. "You sometimes have to make tough decisions to make the
university well."

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