Siena Lending Group LLC (“Siena”) announces the completion of a $5 million debtor-in-possession financing (“DIP Loan”) for a not-for-profit organization (the “Organization”). The DIP Loan will be used to support the Organization’s working capital during bankruptcy and to facilitate a transfer of the Organization.
Getzler Henrich & Associates LLC (“Getzler”) acted as the exclusive financial advisor to the Organization.
The Organization provides educational, behavioral health, and child welfare services to children, adolescents, and families. Their services include two fully licensed schools, programs for children in acute psychiatric crisis, and a range of community-based prevention, child welfare, and behavioral health services in homes, schools, and throughout the local neighborhoods. Founded in 1952, the Organization originally served 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 a not-for-profit public health institute (Newco”). Newco, who has served the region since 1972, has assumed operational oversight of the Organization through a management contract until the acquisition is completed.
Scott Elliotto, Director of Siena Lending Group, said, “We are very gratified to be able to provide this DIP Loan to the Organization and to assist with the progress of the acquisition. Thousands of children depend on the vital services they provide; this will help ensure the continuation of that legacy.”