Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 1, 1994 TAG: 9407010086
SECTION: VIRGINIA PAGE: B2 EDITION: STATE
SOURCE: Associated Press
DATELINE: LYNCHBURG LENGTH: Medium
The Southern Association of Colleges and Schools voted to place the school on the list after determining that Liberty has failed to keep sufficient financial resources to support all of its programs.
``We have already come through our crisis, and we're in the solution stages,'' Falwell, the school's chancellor, said a telephone interview.
Liberty owes $73 million in long-term secured debts, but Falwell said that will be cut nearly in half when ``some business friends of the university'' take on $35 million of the debt within a few days.
``Liberty will have all the [association's] concerns cured in the next several months and, in the opinion of our management, should be removed from warning status at the next meeting of the commission'' next June, Falwell said.
Falwell told school backers earlier this year that Liberty faced an immediate $500,000 shortfall. In a report to creditors, the school said it had a $7 million operating deficit at the end of December.
Under association policy, Liberty has up to two years to correct its problems. If the problems are not solved, the association could put the school on probation for two years, after which it could lose its accreditation.
James Rodgers, executive director of accrediting association, said he has met with Liberty President Pierre Guillermin; and a committee of association officials will visit the campus, although no date has been set.
Falwell said the association, which accredits 800 colleges and universities in 11 Southern states, has not given Liberty a specific debt figure that would be considered acceptable.
``They simply want the financial statements of our auditors to reflect that the university is fully capable of supporting all its programs,'' Falwell said.
Memo: shorter version ran in the Metro edition.