Mid-Continent bankruptcy case on hold

PADUCAH, Ky. (AP) — A shuttered Kentucky college has placed its bankruptcy case on hold until it can start collecting $11.7 million in student debt in hopes of returning to operations as a Bible college.

The Paducah Sun (http://bit.ly/1CRWuLZ) reports Mid-Continent University attorney Mark Whitlow filed a request last week asking the federal bankruptcy court to extend its deadline to submit a reorganization plan to May 1. It was original due on Thursday, but the school says it is still waiting on approval from the attorney general’s office to collect student debt.

According to documents, the reorganization plan is dependent upon the school’s ability to collect the debt.

Mid-Continent shut its doors in June and filed for bankruptcy protection in September. The closing came after the U.S. Department of Education cut off financial aid.

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Information from: The Paducah Sun, http://www.paducahsun.com

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