The previously pending lawsuit by Frank C. Mann involving the financial challenges and closing of Judson College has been settled, reports Rick Lance, executive director of the Alabama Baptist State Board of Missions. He shared the news today (May 17) during the quarterly SBOM board of trustees meeting in Prattville.
Mann, a Winston County businessman, filed the lawsuit in July 2022 seeking to recover the remainder of his $1 million investment in the school. He was part of a group of bondholders who put up $11,230,000 in 2010 to assist Judson officials with financial needs at the time.
The routine interest payments to bondholders allegedly stopped after the school’s closure in July 2021, so Mann targeted a select group of people and entities — including Lance, SBOM and the Alabama Baptist State Convention — for the balance of his interest payments.
Court documents indicate Mann received $750,000 from previously restricted endowment funds in the settlement, and the case was dismissed “with prejudice (meaning the decision is final) … with each party bearing its own costs.”
‘Grateful … to pay toward debt’
Judson President Daphne R. Robinson confirmed the suit was settled April 4, 2024, and noted the previously restricted endowment funds were released by Alabama Attorney General Steve Marshall’s office to pay toward the school’s debts.
While she could not release specifics, Robinson acknowledged the funds are being used to pay toward all remaining debt owed by the school, which sat at around $15 million in 2021 when the school closed.
The Alabama Baptist reported in May 2021 that more than $6 million was being held in those restricted perpetual trust funds and that the school had a board-operated endowment of $9.8 million through its Judson Foundation.
The released funds were not enough to clear all the debts, Robinson said, but “we are grateful that we were able to pay toward our debt.”
Reorganization bankruptcy process continues
She also noted the reorganization bankruptcy process (Chapter 11) continues for Judson. Requested by the creditors and approved by the school’s board of trustees in April 2023, Chapter 11 allows Judson to remain a functioning business while working out a plan to pay creditors over time.
“There have been no definitive plans regarding the future of Judson as we were very focused on settling the debt with the creditors,” Robinson said. “The Judson College Foundation is the owner of the campus, and it employs six security and maintenance workers at this time.”
Robinson, along with vice president Charlotte Clements and staff member Traci Foster, also remain employed by Judson.
Seeking guidance for next steps
“Judson was founded to provide a Christian education for women (and) carried out that mission for 183 years,” she added. “Our prayers are prayers of gratitude and for guidance as we embark on the next phase of our journey.”
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