Bethany University, an Assemblies of God institution in California, announced late Tuesday that its board approved the institution's sale to a group of investors. A statement from the university did not identify the investors, and was vague on the future structure of the institution. The investors, the statement said, "will form a new nonprofit entity to assume operational control of Bethany University. The new corporation agrees to assume all debt and operational liabilities and responsibilities for Bethany University."
Rev. Lew Shelton, who has been president of the university for the last three years, will be leaving that position in July. He did not respond to questions about Tuesday's announcement.
A major controversy in accrediting of late has been the purchase or proposed purchase of regionally accredited nonprofit colleges by for-profit ventures. Ralph A. Wolff, president of the Senior College Commission of the Western Association of Schools and Colleges, Bethany's accreditor, said that he had seen reports about a for-profit purchase of Bethany, but that he had been told the university would remain nonprofit.
Via e-mail, he said: "We understand that the group mentioned in this press release is intending to maintain the nonprofit status of the university, but will need to verify this and the other arrangements as we work through the transition and related transactions. It is likely that the arrangements being sought will require our review and prior approval, which would provide us with far greater detail than this press release."
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