Posted 1 year ago
By Post Staff
CAPWN….the Community Action Partnership of Western Nebraska….has filed for Chapter 11 bankruptcy protection to restructure its debt.
Board President Tim Nolting and Interim Executive Director Margo Hartman told a news conference on Wednesday that the agency, an umbrella organization for over 40 family and human services-type programs, was caught in “a perfect storm” of “unfortunate financial setback.”
Hartman said that the setbacks were the result of the federal sequestration cuts, hits to self-funded insurance programs, and the local impact of a nationwide drop in grants.
Hartman emphasized that CAPWN isn’t going out of business and has enough money to meet current expenses, but also has a “substantial amount of debt” and that the board reviewed all options and came to the “really tough decision” that the bankruptcy filing was the best way to be responsible and continue to offer services.
The Chapter 11 filing allows the agency to remain in control of its operations, but under the oversight and jurisdiction of the federal bankruptcy court through a court-appointed trustee.
Hartman, interim director only a couple of months, says the problems have been building for several years and that long-time director Jan Fitts had been working on them before she stepped down in May.
Nolting, elected board president in March, Hartman, and the board have been working extensively on the debt issue since early May.
Hartman says CAPWN will continue to work with program funders at the state and federal levels while maintaining its partnerships with local public and private sources so that it can continue to provide the services that are vital to so many people in the region. It currently serves about 9,000 individuals in all parts of the Panhandle.