HUNTSVILLE, Ala. — Documents filed in federal bankruptcy court detail the companies, organizations, and utilities expecting hundreds of thousands of dollars in upcoming payments from the Heart of the Valley YMCA.
FOX54 has reviewed the initial filings in the case involving the Huntsville chapter of the YMCA. The organization on Friday said it made the difficult decision to seek Chapter 11 bankruptcy protection, calling it “the right decision for the future of our YMCA.”
Records show the Board voted in favor of the bankruptcy filing on Thursday.
The single largest unsecured creditor listed in the filing is a playground equipment provider named Struthers Recreation. That company is owed nearly $124,000, according to court records.
YMCA officials said an equipment purchase was made after the organization qualified for a state grant. The YMCA still expects to receive funds from the government to cover that one-time expense.
Other listed creditors receive regular monthly payments. Redstone Federal Credit Union, for example, is due more than $38,000 in scheduled payments.
Other major creditors include:
Huntsville Utilities, which receives payments of about $40,000. The utility appears twice in the federal documents, with separate entries – for rent and for utility services – of about $20,000 each.
The YMCA Retirement Fund, which receives about $19,000.
Hatch Inc., a Wisconsin-based company that describes itself as a specialist in “interactive early-learning solutions,” which receives about $23,000.
YMCA of the USA, which receives about $19,000.
Only the top 20 creditors are listed in the report, which you can view here (PDF).
MORE DOCUMENTS | Employee Pay records (PDF) | Full Bankruptcy Filing (PDF)
The Heart of the Valley YMCA is also asking the Court to allow it to continue with normal, uninterrupted payments of employee wages and salaries.
“Debtor’s failure to meet its obligations to its employees in the ordinary course would destroy employee morale and likely cause most employees to simply resign, inflicting immediate and pervasive damage to Debtor’s ongoing business operations,” the chapter explained. “The resulting harm to Debtor’s estate and the value of the estate’s assets would be immediate, irreparable, and incalculable.”
Heard, Ary & Dauro, LLC, a Huntsville law firm whose specialties include bankruptcies, is representing the YMCA chapter.
2023 data shows Heart of the Valley YMCA has more than 400 paid workers serving nearly 27,000 members across its three area facilities.
This report has been updated to clarify that the figures listed for unsecured creditors relate to upcoming payments.