By OnMilwaukee Staff Writers   Published Dec 01, 2014 at 7:15 PM

The YMCA of Metropolitan Milwaukee (the "Y") announced today that it has filed its formal plan of reorganization with the United States Bankruptcy Court.

This plan reflects significant time and effort made to reach an agreement for how the banks and other creditors will be treated within the plan. The organization believes the plan will be 100 percent consensual among the entire bank group, and hopes to receive full trade creditor approval as well.

The Y has requested a hearing date as early as possible to approve the plan, with the hope of exiting Chapter 11 as soon as late January 2015. If its reorganization plan is approved by the Court, the Milwaukee Y will emerge from Chapter 11 debt-free.

Specifically, the Y will be transitioning away from programs and services not core to its mission, and instead refocusing its work in its strongest areas: health and wellness and non-academic youth development. The Y will place a priority emphasis on programs dedicated to swim education, corporate and community wellness, senior wellness and socialization, before- and after-school care and day and overnight camps, in addition to fitness programming at its centers.

Among other things, the restructuring process included:

  • The sale of over 70 percent of the Milwaukee Y’s owned properties.
  • The sale of the Milwaukee Y’s former charter school, the Young Leaders Academy.
  • Transferring some programs to organizations better-equipped to run them long-term.
  • Finalizing the process of reducing staff by 55 percent to better align with the Y's smaller footprint.
  • Beginning to rebuild leadership to help drive future revenue growth, especially in the areas of sales and development / donor relations.
  • Negotiating the distribution of available sale proceeds, cash and assets to repay as much debt as possible, while preserving a viable go-forward financial and operating model.