Facing more than $30 million in debt, Morris Brown College officialshave filed for bankruptcy protection.
The Atlanta Journal-Constitution reports that the move is a last ditch effortto prevent the school from being foreclosed on and sold at auction.
The 131-year-old historically black college is facing foreclosure next monthafter investors called $13 million worth of bonds tied to the school.
The bonds were issued in 1996 by the Fulton County Development Authority. Theschool had pledged several pieces of property as security. An auction of assetswas set for Sept. 4.
The Chapter 11 bankruptcy filing gives federal protection to businesses unableto pay their debts and allows reorganization. A lawyer for Morris Brown saysthe emergency filing delays the foreclosure until a judge decides otherwise.