Finlandia placed into receivership
Company appointed is based in downstate Bloomfield Hills
HANCOCK — Some prospective buyers have already been found for some of the Finlandia University properties, the CEO of the firm appointed as receiver of the university said Monday.
The Ingham County Court appointed O’Keefe, a Bloomfield Hills-based financial and strategic advisory firm, as receiver over Finlandia, the firm announced in a Monday statement.
The firm specializes in corporate finance, litigation support, strategic advisory, and turnaround and restructuring.
“It’s a tough situation for the community, but we’re going to try to minimize the hurt and do the best we can to make sure the community has assets we can be proud of,” said Patrick O’Keefe, the founder and CEO of O’Keefe.
As receiver, O’Keefe will be responsible for the winding down of the university, including selling off assets and meeting the university’s obligations. Finlandia announced its closure in March, citing declining enrollment and the university’s debt load.
The firm is gathering information on the university’s assets — buildings as well as property like athletic equipment and computers. That information will be passed on to real estate agents, auctioneers and other people who can help sell the properties, O’Keefe said.
Since last week, O’Keefe has been talking with people who might be interested in some of the larger assets, he said. Some purchase agreements are already tentatively in place, O’Keefe said.
O’Keefe singled out housing as an important use that’s being looked at for some of the properties. Beyond that, there’s a range of other uses, he said.
“There’s a lot of creativity, and I think everyone understands the importance of the downtown area,” he said. “I think something positive will come out of it.”
It has yet to be determined whether selling Finlandia property will be enough to pay off the university’s debts, O’Keefe said.
Over the next couple of months, O’Keefe will also begin reducing the number of people who work on the campus. While plans have not been finalized, some employees would continue to be paid past June, O’Keefe said.
In Monday’s statement, Finlandia University President Tim Pinnow said the university is “thrilled” by the appointment.
“Pat O’Keefe and his team have personal experience in higher education and understand the importance of Finlandia to the region and the Finnish community,” he said. “They have already made several positive steps that will help Finlandia University wind down operations gracefully and with integrity.”
