Seven Counties opts for bankruptcy, cites pensions

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by AP

WHAS11.com

Posted on April 5, 2013 at 10:23 AM

 LOUISVILLE, Ky. (AP) -- A non-profit organization that provides behavioral health and development services in the Louisville area has filed for bankruptcy with company officials citing unsustainable mandatory employer contribution rates to the state retirement system as the reason.
 
Seven Counties Services filed for protection from creditors on Thursday in federal bankruptcy court in Louisville. Company spokesman Dean Johnson says Seven Counties projects an operating loss of more than $2 million for the fiscal year ending July 1.
 
Johnson says with another increase next year, the projected loss for 2014 jumps to $8.5 million, with all cash reserves for operations wiped out in 12 to 18 months.
 
Company officials say two measures pushed during the most recent legislative session did nothing for non-governmental entities like Seven Counties.
 
Seven Counties intends to continue operating.


 

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