Hampshire College’s latest audit warns the small liberal‑arts institution faces repeated covenant breaches and a possible closure if it cannot refinance short‑term debt. Auditors noted the college moved more than $20 million of long‑term debt to current obligations after covenant violations and recorded recurring operating deficits and falling net assets. Lenders have extended tender dates through September 2026 while the college seeks investors and implements a strategic plan. The audit cites a 13.9% drop in net assets to $37.9 million and a $3.7 million operating deficit for fiscal 2025, underscoring liquidity and refinancing risks that could force program cuts or a campus sale if a deal is not secured.