Ohio Valley University files for Chapter 7 bankruptcy

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VIENNA, WV (WTAP) — The Ohio Valley University has filed for Chapter 7 bankruptcy.

The filing was made in the United States Bankruptcy Court for the Northern District of West Virginia by university attorney Martin Sheehan.

A press release from Sheehan’s office says secured creditors have rights to the collateral, but any property unclaimed by those creditors can be sold to pay other debts.

Court documents say filing for bankruptcy at least temporarily prevents most debt collectors from suing the university or taking other action to recover their money or property.

As part of a Chapter 7 filing, a trustee took control of all of the university’s assets. He is named in court documents as Thomas Fluharty, of Clarksburg, West Virginia.

Sheehan said in a phone interview that OVU had a total debt of at least $15 million. He said the school is unlikely to ever return.

OVU closed its doors to most students late last year, just days before the West Virginia Higher Education Policy Commission ruled to revoke its degree-granting ability, effective June 30, 2022. .

Plans were made to help students complete their studies at other schools, but a handful were allowed to return in the spring semester to complete their studies.

The press release states that OVU currently has 16 students graduating from campus.

A meeting of creditors is scheduled for April 13 at 11:30 a.m. The school representative must be present for the examination.

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