Saint Augustine's University outlines cost-cutting in bankruptcy hearing

Saint Augustine's University officials provided creditors with updates on cost-cutting measures and a proposed budget during a bankruptcy hearing in Raleigh, North Carolina. The university has suspended classes for the current academic term due to ongoing financial challenges.

The hearing also addressed a lawsuit filed by the estate of former Chancellor Dr. Christine McPhail against the university and two former board chairs. The judge issued a temporary stay to prevent additional costs from accruing while the matter is reviewed. The court has requested that the university's legal counsel provide updates regarding insurance coverage and an updated cash collateral budget at the next hearing, which is scheduled for October 1.