Judge Issues Order in Seven Counties Services Bankruptcy Proceedings
FOR IMMEDIATE RELEASE: May 31, 2014
FOR MORE INFORMATION CONTACT:
Gwen Cooper, Vice President – External Affairs
502-498-0783 gcooper@sevencounties.org
Judge Issues Order in Seven Counties Services Bankruptcy Proceedings
Louisville, KY-United States Bankruptcy Judge Joan A. Lloyd, presiding Judge in the Seven Counties
Services Chapter 11 Bankruptcy filing, ruled yesterday that Seven Counties Services is eligible to file
Chapter 11 bankruptcy. And; in fact, Seven Counties is a non-governmental unit.
Seven Counties Services filed for Chapter 11 protection with the United State Bankruptcy Court,
Western District of Kentucky on April 4, 2013. Seven Counties initiated the Chapter 11 proceedings to
protect the services and interests of Seven Counties consumers by relieving the nonprofit of the wholly
unrealistic financial burden of the Kentucky Employees Retirement System. In just eight years, the
contribution rate for Seven Counties to participate in the KERS has increased almost 33%. And while the
2014 General Assembly approved an allocation of funds for Community Mental Health Centers to
subsidize the increase from the current July 2013 rate of 26.79% to the July 2014 rate of 38.6%, Seven
Counties simply cannot sustain this financial burden and continue to provide adequate services to our
consumers.
Prior to stopping the employer contribution to KERS, Seven Counties contributed over $360,000
bi-weekly. These are dollars that are desperately needed to maintain and expand the services our 31,000
clients need to live to their fullest potentials. “$360,000 could provide a road to recovery for 514 more children and adults living with serious and persistent mental illness. $360,000 would give 100 more individuals with developmental disabilities the supports they need to gain and hold a job for a year; it could get 89 women with substance abuse problems into evidence-based, proven therapies that would lead to addiction recovery, family reunification and sustained employment,” says Dr. Anthony Zipple, President & CEO of Seven Counties. “Serving our consumers is our most important priorities and we must take this action to protect them,” says Zipple.
Seven Counties did transfer all employees into a more traditional 4013B retirement plan allowing employees to continue planning their financial futures.
This decision by Judge Lloyd allows Seven Counties to remain in bankruptcy court and to pursue
a reorganization plan to protect the business operations, including discharging any past or future
obligations to the Kentucky Retirement System.
For more information please contact Gwen Cooper via email, gcooper@sevencounties.org or
phone 502-589-8615 ext. 1355 or visit www.ourconsumersfirst.org
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Seven Counties Services (SCS) builds health communities by helping those we serve realize their potential. Since 1978, SCS has delivered life-enhancing care, treatment and services throughout Metro Louisville to persons with severe mental illnesses, children with emotional and behavioral disorders, individuals with developmental or intellectual disabilities, and adults and adolescents with addictions. A local not-for-profit agency and fully accredited by the Joint Commission, SCS receives national, regional and local recognition for innovation and effectiveness in treatment and prevention. We serve more than 31,000 individuals a year at service centers and over 120 schools; assist more than 55,000 callers a year through the Hope Now Hotline (800-221-0446); and inform more than 100,000 unique visitors per month at www.sevencounties.org