Dive Brief:
- A Massachusetts family objected last week to the proposed bankruptcy sale of Anna Maria College’s real estate, which the Catholic institution is using to pay off its debts after shuttering earlier this year.
- David and Elaina Roy and their son allege that Anna Maria leaders promised to gift them a 2.4-acre parcel bordering their own property. The college included the plot in its marketing of the rest of its roughly 260 acres of real estate for sale and disputes the family’s claim.
- The Roys asked the judge overseeing Anna Maria’s bankruptcy to recognize their claim and postpone any sale of the contested parcel until they resolve the legal disagreement over ownership. Barring that, they requested the judge hold any proceeds from the sale tied to the property in escrow until the dispute is settled.
Dive Insight:
The Roys’ objection adds a wrinkle to the sale of Anna Maria’s real estate portfolio, which the college has said in court documents is worth more than the $17.7 million in secured debt it needs to pay off in bankruptcy. Their objection could potentially delay or restructure the property sale.
Anna Maria’s attorneys and president have acknowledged throughout the bankruptcy process that the Roys asserted a claim over the property. Indeed, the Roys sued the college in 2025 in state court over the property, a case that is still playing out as the conflict spills into bankruptcy court.
A judge in the state case blocked Anna Maria from selling the property until the case was resolved. However, Anna Maria President Sean Ryan said in a bankruptcy court filing that the order wasn’t recorded with the local deeds office by the time Anna Maria filed for bankruptcy…