business

PHMC completes its takeover of bankrupt Wordsworth Academy

Harold Brubaker, Staff Writer

Updated: Tuesday, January 2, 2018, 1:57 PM

Public Health Management Corp. completed its acquisition of Wordsworth Academy Inc. on Jan. 1.

Public Health Management Corp., of Philadelphia, completed its acquisition of Wordsworth Academy Inc., another Philadelphia nonprofit that filed for bankruptcy protection in June after the fall 2016 death of a teenager in a struggle with staffers at a Wordsworth residential program.

The acquisition, effective Jan. 1, was part of Wordsworth’s bankruptcy plan. PHMC did not pay for Wordsworth, whose remaining education, behavioral health, and child welfare programs will be incorporated into those PHMC already has.

Wordsworth’s bankruptcy plan was approved on Dec. 18, allowing the acquisition to happen.

The bankruptcy was rough on general unsecured creditors, who are owed $3.7 million. They are expected to get only 10 percent of the money owed.

Plaintiffs in abuse cases against Wordsworth in September reached agreements with the human services agency that will allow them to negotiate for insurance settlements parallel to the bankruptcy proceedings.

Harold Brubaker, Staff Writer

Read full story: PHMC completes its takeover of bankrupt Wordsworth Academy