New Chapter 11 Filing - Wordsworth Academy

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Wordsworth Academy

  • 6/30/17 Recap: Loyal PETITION readers know that we love lending snarky editorial color to chapter 11 filings. But sometimes things go beyond the pale and just aren't funny. This is one of them. This entity is a Pennsylvania non-profit corporation that provides education, behavioral health and welfare services to nearly 5,000 children who have emotional, behavioral and academic challenges. Why did it file? The company claims it needs an operational restructuring but there is a critical overhang here: a resident of one of the facilities died while being restrained. On top of that, there were other "allegations of other serious problems" at the same facility where the death occurred. There is an ongoing wrongful death suit against the company. Litigation appears to have pushed this company into bankruptcy, plain and simple. Tragic, sad, and definitely not amusing.
  • Jurisdiction: E.D. of Pennsylvania
  • Capital Structure: $4.7mm debt (M&T Bank)    
  • Company Professionals:
    • Legal: Dilworth Paxson LLP (Lawrence McMichael, Peter Hughes, Anne Aaronson)
    • Financial Advisor: Getzler Henrich & Associates LLC (William H. Henrich)
    • Claims Agent: Donlin Recano & Company Inc. (*click on company name above for free docket access)
  • Other Parties in Interest:
    • Secured Lender: M&T Bank 
      • Legal: Reed Smith LLP (Peter Clark II, Jennifer Knox)

Updated 7/11/17