Oakland City University says it will lay off all its employees June 1.

Todd Mosby

An Indiana Christian institution that said last week unnamed donors could save it from closure and pay its unpaid workers announced Tuesday it's “suspending” its undergraduate classes for the upcoming academic year.

“Our online graduate programs will continue to operate during this time,” Oakland City University said in a statement on its Facebook page. “In addition, the University will continue efforts to sell the carbon capture patent, with the hope of reopening once those efforts are successful.”

That patent was one of a few ways the institution said it was seeking to solve its financial issues as employees missed their May 8 paychecks and the university told the state it plans to lay them all off June 1. When the university issued the Worker Adjustment and Retraining Notification Act notice on April 1, it listed 167 employees. But Todd Mosby, the university’s associate vice president of advancement, development, marketing and communications, told Inside Higher Ed Friday that employees have since left.