A company that worked with Eastern Gateway Community College in the past is accusing the college of liquidating its assets to avoid paying money it owes them.

According to a court filing from Student Resource Center (SRC), the company had emailed Eastern Gateway expressing concerns that the college "is attempting to liquidate and dissipate its assets in an attempt to become judgment proof from SRC's pending claims prior to the court's ruling."

SRC's primary revenue came from a collaboration agreement between it and Eastern Gateway back in 2017 to administrate the Free College Union Benefit Program.

The document states that SRC has suffered over $47 million in damages due to operating expenses and profit-sharing payments that have not been reimbursed.

The email went on to ask Eastern Gateway to assure SRC that any proceeds from the sale of its assets would be withheld from them until those dues are paid in order to prevent the college from transferring assets away from its creditors including SRC.

According to the filing, Eastern Gateway responded to this email the following day which read in part:

“Any proceeds EGCC realizes from the sale will be used to pay ongoing operating expenses and/or outstanding debts. If SRC would like to secure a place in line with EGCC’s creditors, it should make a reasonable settlement demand."

Following this email, SRC had requested a timeline from Eastern Gateway's sale of its assets, as well as assurance that the proceeds from these sales would be kept in escrow until their dues to SRC are paid.

According to the document, this email was sent to Eastern Gateway on May 30. As of the filing, dated June 5, the college has not replied to this email.

As it stands, Eastern Gateway is expected to dissolve on October 31 due to ongoing financial issues with the college.