Lourdes University Files for Chapter 11 Protection to Support Orderly Wind Down

Lourdes University today filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The filing is intended to support an orderly wind down of the University’s operations, the settlement of its remaining affairs and the disposition of its assets.

The Lourdes University Board of Trustees voted unanimously, to authorize the filing after consultation with University administrators, financial and legal advisors and other professionals.

“This was a difficult but necessary decision,” said Jonnie Hodges, Chair of the Lourdes University Board of Trustees. “The Board has worked carefully and deliberately to evaluate the University’s financial position and the alternatives available to us. We determined that Chapter 11 provides the most responsible and equitable process for Lourdes University, its creditors and other interested parties.”

The Chapter 11 process will allow Lourdes University to submit a Plan of Liquidation to the Bankruptcy Court for approval. The plan is expected to be funded through the sale of available assets, with proceeds distributed according to the priorities established by the Bankruptcy Code.

The filing is not expected to affect the employment of the remaining staff members who are assisting with the wind down of University operations.

Lourdes University also remains accredited by the Higher Learning Commission, and its degree-granting authority will remain in place at least through Summer 2026. The University’s previously approved teach-out activities and efforts to help former students continue and complete their academic programs will also continue.

“Our priority remains completing this process with integrity, transparency and respect for the students, employees, alumni, creditors and community members who have been part of Lourdes University,” said Sister Nancy Linenkugel, OSF, DM, president of Lourdes University. “We are deeply grateful to the employees who have remained with the University during this transition and to everyone who has supported Lourdes throughout its history.”

The bankruptcy process is designed to ensure that similarly situated creditors are treated fairly and that no creditor receives preferential treatment outside the priorities established under federal law.

The University’s real estate disposition process will also continue through SVN Ascension Realty Toledo, the national real estate brokerage firm retained by the Board of Trustees. The Lourdes University campus is owned and maintained by the Sisters of St. Francis of Sylvania, Ohio.

Additional information and answers to frequently asked questions are available at Lourdes.edu/closure.