Anna Maria looks to sell nursing assets to Assumption for $990K

Anna Maria College in Paxton is looking to sell assets from the school’s nursing program to Worcester’s Assumption University for $990,000.

The Sisters of Saint Ann, the Marlborough-based religious organization and owner of Anna Maria, filed a notice of intended sale on Monday as part of its ongoing Chapter 11 Bankruptcy. The sale would see Anna Maria sell assets that previously supported the school’s undergraduate and graduate nursing programs.

These assets include curricular materials, studies, reports, and other related documents but does not include any of Anna Maria’s real estate holdings. 

Assumption already announced in May its plans to absorb Anna Maria’s nursing program. Assumption has said it plans to expand its program’s capacity to absorb any students transferring from Anna Maria. Nichols College in Dudley is taking on other academic programs from Anna Maria. 

The sale would see Assumption pay $1.1 million but would involve a hold-back reserve of $110,000. That hold-back reserve will cover any indemnifiable damages Assumption suffers, as defined in the sale agreement between the two parties. The hold-back reserve would otherwise be returned to Assumption one year after the close of the transaction, resulting in a final sales price of $990,000.

The sale is expected to be finalized on or before Sep. 30, according to the court filing. Any objections to the sale must be made by noon Sep 2, prior to a bankruptcy court hearing scheduled for the following day. 

Anna Maria announced its plans to close after 80 years of operation in April. In its bankruptcy filing, the private Catholic college blamed dwindling enrollment and four straight years of operating losses for the closure. 

Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.