Bankruptcy Update: KidsPeace Owes $240M

KidsPeace, a national non-profit treatment center for children with mental and behavioral issues, owes $240 million in debt, largely due to pension obligations, according to The Morning Call.

On Tuesday, KidsPeace, whose headquarters are based in North Whitehall, filed for Chapter 11 reorganization in U.S. Bankruptcy Court.

The organization, which has been struggling with longterm debt and pension obligations for several years, owes $101 million in pensions, the Call said.

KidsPeace has been seeking ways to add new sources of revenue in recent years. It recently contracted with the U.S. Office of Refugee Settlement to house refugee children from Central America and South America at the KidsPeace Family Center on Broadway in Salisbury Township.

In 2012, KidsPeace proposed adding adult outpatient therapy to the Broadway campus, but was rejected because the use does not comply with zoning.