The College of New Rochelle entered chapter 11 on September 20, 2019 as a New York not-for-profit with $50 million to $100 million of assets, $50 million to $100 million of liabilities and 1,000 to 5,000 creditors. The 1904-founded Catholic liberal arts college had already stopped academic instruction in August 2019 and used the case to wind down after payroll-tax failures, declining enrollment and liquidity stress; the campus debt stack included Citizens Bank at $31.985 million, UMB as NRIDA bond trustee at $14.29 million, KeyBank at $2.312 million and The Carney Family Charitable Foundation at $2.0 million, alongside asserted IRS and New York tax claims source filing source filing source filing.

The court confirmed the Third Amended Chapter 11 Plan on March 12, 2020, converting the case from a campus-sale wind-down into a post-confirmation liquidation trust. The court had already approved the campus sale to The Trustees of the Masonic Hall and Asylum Fund, subject to Mercy College's lease rights, with liens shifting to sale proceeds; the confirmed plan transfers remaining assets to a Liquidation Trust, authorizes distributions under the plan waterfall and names a trust board of Susan Canning, Gordon Gendler and Paul Mongeau, with Mark Podgainy serving as Liquidation Trustee source filing source filing source filing.