Siena Lending Group completed a $5 million DIP financing for a not-for-profit organization.
The DIP financing will be used to support the organization’s working capital during bankruptcy and to facilitate a transfer of the organization.
Turnaround and restructuring firm Getzler Henrich acted as the exclusive financial advisor to the organization.
The organization is a private, not-for-profit providing education, behavioral health and child welfare services to children, adolescents and families. Its services include two fully licensed schools, programs for children in acute psychiatric crisis and community-based prevention, child welfare and behavioral health services in homes, schools and local neighborhoods.
Founded in 1952, the organization was focused originally on serving students with reading disabilities. The name and scope of services changed in 1965, and the organization has grown from serving 20 students to serving close to 5,000 children every year. Due to financial difficulties, the organization filed Chapter 11 bankruptcy in June 2017 and expressed consent to be acquired by Newco, a not-for-profit public health institute. Newco has assumed operational oversight of the organization through a management contract until the acquisition is completed.