FEGS Health & Human Services to Complete Transfer of Programs and Services through Court-Supervised Chapter 11 Relief
Orderly Process to Transfer Remaining Programs Continues
NEW YORK, March 18, 2015 /PRNewswire/ -- Federation Employment & Guidance Service ("FEGS"), a nonprofit health and human services organization, today announced that it has entered the final stages of the previously-announced transfer of its programs and services and consequently the winding down of its operations. To facilitate this, FEGS has filed for Chapter 11 relief in the U.S. Bankruptcy Court for the Eastern District of New York. The filing will provide the best opportunity for the uninterrupted continuation of FEGS programs and services to clients under different agencies.
"This filing represents the next step in our commitment to transfer all programs and services to appropriate parties in a way that ensures our clients experience uninterrupted care and support," said Kristin M. Woodlock, CEO of FEGS. "Utilizing the Chapter 11 process will best position FEGS to accomplish our goal. The employees of FEGS have seen to it that clients continue to receive the high quality service for which FEGS has been known. I want to recognize their heroism during this very difficult time."
FEGS fully expects to continue to operate during the bankruptcy process, including maintaining:
- Wages and benefits for employees, with full protection under U.S. federal law for qualified retirement plans.
- Continuing to deliver the high quality service for clients that FEGS is known for.
- Payment to vendors and suppliers for all goods and services provided after the date of the Chapter 11 filing.
In conjunction with the filing, FEGS has arranged for a loan facility of up to $10 million from UJA-Federation of New York that will support continued operations as programs are transferred and ensure payment to suppliers and service providers in the ordinary course of business. FEGS will seek immediate approval of the borrowing from the Court.
To date, FEGS has made substantial progress in transferring several of its programs and services to appropriate social service organizations that intend to continue their operation. Several major employment, workforce development and youth education programs have already been successfully transferred to other providers. FEGS is working closely with government and several other organizations to transfer its remaining programs and services and ensure continuity of care. These remaining transfers are well underway and expected to be completed in the near future.
SOURCE Federation Employment & Guidance Service
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