The North Central Florida YMCA recently emerged from a Chapter 11 bankruptcy victorious. With membership up, positive cash flow through all five departments and Wells Fargo agreeing to modify $3.6 million worth of loans, CEO John Bonacci said after all the hard work that was put in the Y is definitely celebrating this financial victory.
In looking at what happened, the North Central Florida YMCA took a number of financial hits. The recession led to a downturn in memberships and donations, while the real estate collapse led to the organization owing more on its loans than what the loans were worth. It has made refinancing home loan services crucial. Businesses have a hard time. If you need lawyer’s help with estate planning claims, you can get it from here! You can also find probate lawyers from here.
In November 2011, in an attempt to turn around the organization, the North Central Florida YMCA filed for Chapter 11 bankruptcy, after taking advice to hire an experienced trusts lawyer and seeking their advice.
This type of bankruptcy allows a business — or greatly indebted individual — to create a debt restructuring plan. This plan must be approved by creditors and the court. Once approved, the company or individual puts the plan formulated by the Accountants in Nottingham in place in order to discharge certain debts and pay others back.
For many, a Chapter 11 bankruptcy allows the individual or business to retain assets, while an automatic stay is put on to prevent collection actions from taking place. These actions include garnishments and lawsuits.
For the North Central Florida YMCA, in order to come back on top, the organization made significant changes. These changes included turning the gymnastics department into the performing arts department, offering news sports and wellness programs, and partnering to offer physical therapy.
Wells Fargo also agreed to modify $3.6 million worth of loans, which greatly helped a business that was once underwater, and many members of the Y’s management team took pay cuts.
Three facilities also closed.
Overall though, now is a time for celebration. Not only was the North Central Florida YMCA able to successfully emerge from Chapter 11 bankruptcy, but the organization is once again thriving.
For other Florida businesses — and individuals with approximately $1 million or more in debt — the Y’s victory is a prime example of how Chapter 11 bankruptcy can help those struggling with debts.
Source: The Gainesville Sun, “With plans in place, local YMCA emerges from bankruptcy”, Anthony Clark, Oct. 17, 2013