Friday, January 20, 2012

NPO Owes Big Bucks to City; Files Bankruptcy

New Horizons Family Center, a now-defunct nonprofit entangled in financial issues that promised to repay hundreds of thousands of dollars it owed the city of Glendale, California, has filed for Chapter 7 bankruptcy. The NPO reportedly faces liens, legal issues and a long list of unhappy creditors.

According to bankruptcy records, the nonprofit has estimated assets and liabilities of between $500,001 and $1 million. New Horizons sold its Glendale headquarters this summer to a local businessman for $1.73 million. That money went to repay government grants and back taxes. The state got about $1.5 million and Glendale got $46,000.

New Horizons has provided child-care services to low-income families in Glendale since 1994, receiving over $1 million in federal community block grants and stimulus money for social services and capital improvements since 2000. It closed after funds for a multimillion-dollar building project fell through. Glendale gave New Horizons about $300,000 in federal funds despite the fact the group had been facing financial problems. In an article by Brittany Levine for www.glendalenewspress.com, City Attorney Mike Garcia stated that the bankruptcy doesn’t necessarily mean the city won’t get paid, but that it will affect just when that may happen.
J.P. John Perron, New Horizons’ real estate broker, said that the nonprofit also plans to repay the city from about $1.4 million it expects to make by selling its former building to a Los Angeles-based affordable housing developer called PATH Ventures.

PATH is currently in escrow on the properties with the sale contingent on city approvals and funding to construct an affordable-housing project for U.S. military veterans. According to John Molloy, PATH’s executive director, “those approvals have been on hold as the city grapples with court issues that leave the future of its redevelopment agency uncertain”.
New Horizons was also about to go to trial concerning a lien that Glendale-based George Hopkins Construction Co. had placed on the NPO’s properties. The company claims the nonprofit owes them over $200,000 for construction work connected to the scrapped child-care center.

The bankruptcy attorneys at Macey Bankruptcy Law experts offer a free initial phone consultation to start you on the path to a brighter, more secure financial future. We will even give you a range of fair legal fees during your phone call. Some bankruptcy lawyers charge $2,500 or more for a basic Chapter 7 bankruptcy; Macey Bankruptcy Law experts provide the highest quality legal representation, often at a fraction of that cost. Our bankruptcy attorneys have over 100 years of combined bankruptcy representation experience and have saved over 100,000 satisfied clients more than $500,000,000 since 1994. You can rely on the Macey Bankruptcy Law experts for knowledgeable and experienced Chapter 7 and Chapter 13 bankruptcy protection and representation. Call us Monday thru Saturday toll-free at 1-800-260-1402 and go to www.maceybankruptcylaw.com for vital information on filing Chapter 13 or Chapter 7 bankruptcy.

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