The Court of Justice has upheld the bankruptcy of the American University School of Medicine Aruba Campus Foundation (AUSOMA), rejecting the institution’s appeal against the first-instance ruling of October 9, 2026. The judgment was given on November 12, 2026.
AUSOMA had argued on appeal that it was not in a state of permanent non-payment toward its creditors and that there was hope of financial support to cover its outstanding debts. The court concluded, however, that AUSOMA failed to demonstrate that it could meet its financial obligations — even if the financing it was counting on were to materialise.
Debts above Afl. 1.8 million in claims
According to the November 12 judgment, AUSOMA acknowledged considerable financial obligations, including Afl. 746,883.20 owed to the Tax Department, Afl. 135,263.18 to the SVB, Afl. 342,026.41 in back salaries owed to employees, and Afl. 173,927.25 in outstanding pension contributions. A financial summary presented by the university itself put its total debts at more than Afl. 1.56 million, while the trustee, mr. G.W. Rep, informed the court that creditors have filed claims totalling more than Afl. 1.81 million. The trustee also indicated that no assets have yet been identified in the bankruptcy estate.
AUSOMA said it expected a loan of USD 650,000 — roughly Afl. 1.16 million — of which USD 300,000 would be available to pay creditors. The court considered that this financing would not be sufficient to cover the total outstanding debt. AUSOMA also disputed the amount claimed by the Tax Department, arguing its real tax debt was considerably lower, but the court found it had not presented sufficient proof for that position, and there was no convincing evidence of payment agreements with the Tax Department or the SVB. A payment of USD 5,000 relating to the original USD 30,000 claim of the party that petitioned for the bankruptcy was likewise not enough, in the court’s view, to show the university had overcome its broader financial problems. The court therefore determined that AUSOMA remains in a state of cessation of payments.
A door left open for students
During the appeal, concerns were raised about the impact of the bankruptcy on AUSOMA’s students, who could be forced to interrupt their studies during the academic year. The court acknowledged those concerns and noted that a bankruptcy declaration does not necessarily remove every possibility of continuing educational activities: with the trustee’s cooperation, AUSOMA may still explore a restart of its activities or a temporary continuation of its operations, although the judgment offers no guarantee that such a solution will be achieved.
The decision was rendered by judges C.G. ter Veer, G.C.C. Lewin and R. Prakke-Nieuwenhuizen. The bankruptcy process will continue under the supervision of the trustee, mr. G.W. Rep.
Source: NoticiaCla (November 12, 2026)
