The College of Saint Rose, a century-old institution that ceased operations last year amid declining enrollment, has filed a disclosure statement detailing its liquidation plan that estimates unsecured creditors will recover approximately 24.86% of their claims while bondholders will receive about 50.46% of their $48.5 million secured claim. The plan, filed April 11 in the Northern District of New York Bankruptcy Court, follows the recent $35 million sale of the college's Albany campus and outlines how remaining assets will be distributed among creditors.
Founded in 1920 by the Sisters of Saint Joseph of Carondelet, the once-thriving college closed its doors on June 30, 2024, after years of financial struggles culminated in a November 2023 board decision to cease operations. The institution's downfall followed a precipitous enrollment decline from 5,130 students in 2010 to just 2,566 in Fall 2023.
"For more than 10 years, as the College's structural deficit grew—caused by unachieved enrollment goals, a rising tuition discount rate, the financing structure of the College's bond debt, and a relatively low unrestricted endowment—the Board of Trustees and College leadership worked to achieve financial sustainability," the filing states.
The COVID-19 pandemic delivered the final blow to the institution's already precarious finances. First-year enrollment plummeted from 640 students in Fall 2019 to just 239 in Fall 2022, despite various cost-cutting measures and restructuring efforts.
After filing for Chapter 11 protection on October 10, 2024, the college proceeded with the sale of its primary assets. Following a court-supervised auction in December 2024, the 72-building Albany campus was sold to the Land Authority for $35 million, while the President's House was separately sold to Becker for $625,000. The sales closed in March 2025.
The liquidation plan divides the college's assets into several "buckets" for distribution purposes. From the campus sale proceeds, the college has already paid its debtor-in-possession (DIP) lender in full and distributed $22.35 million to bondholders. The remaining assets to be distributed include proceeds from the President's House sale, remaining cash, loan proceeds, and collateral.
In a notable concession, the Bond Trustee agreed that proceeds from the President's House sale, amounting to $624,529.57, would be made available to holders of administrative claims, priority tax claims, and general unsecured claims, rather than being claimed by the bondholders.
"The Debtor estimates that there will be $966,948 available for distribution to Allowed General Unsecured Claims, amounting to approximately 24.86% of Allowed General Unsecured Claims," the disclosure statement indicates. This amount could be reduced by additional claims from rejected executory contracts.
Priority tax claims, totaling approximately $750,491, will be paid in full, as will a modest amount of other priority claims totaling $993.
The plan provides for the appointment of Debra Lee Polley as Plan Administrator to oversee the liquidation of remaining assets, pursue any potential causes of action, make distributions, and handle other wind-down activities after the plan's effective date.
A unique aspect of the bankruptcy involves the college's endowment and restricted funds, which are unavailable for distribution to creditors. The disclosure statement indicates that "The Debtor will shortly be filing a cy pres petition in the New York State Supreme Court, with the concurrence of the New York State Attorney General's Office, to distribute the Endowment and Restricted Funds as set forth in that petition."
Before shuttering, the college implemented teach-out agreements with 21 institutions to enable its remaining students to complete their degrees. As of the end of 2024, 785 students had enrolled with partner institutions, while the college conferred 211 final degrees on December 20, 2024.
The plan provides that after the Effective Date, which cannot occur before June 30, 2025 (unless waived by the Debtor), the Plan Administrator will manage the distribution of funds to creditors according to the established waterfall structure. Debtor's counsel Matthew G. Roseman and Bonnie L. Pollack of Cullen and Dykman LLP will continue to represent the Plan Administrator in finalizing the bankruptcy process.
For the plan to be confirmed, it must receive approval from at least one impaired class of creditors representing two-thirds in dollar amount and more than half in number of those voting. The disclosure statement notes that if certain classes reject the plan, the Debtor reserves the right to seek "cram down" confirmation under Section 1129(b) of the Bankruptcy Code.
The case is being heard in the United States Bankruptcy Court for the Northern District of New York, Albany Division, under Case No. 24-11131 before Judge Robert E. Littlefield, Jr.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 61 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.