NEW YORK, May 24, 2013 /PRNewswire-USNewswire/ -- U.S. Bankruptcy Judge Shelley C. Chapman, Southern District of New York, signed an order Thursday accepting Daytop's restructuring plan, following a vote of approval by creditors.
"The Bankruptcy Court finds and concludes that the Plan has been proposed with the legitimate and honest purpose of maximizing the recoveries available to creditors," Judge Chapman wrote.
The approved plan also received the blessing of a state regulatory agency, the Office of Alcoholism and Substance Abuse Services, which has agreed, pending state Comptroller approval, to renew a one-year contract providing funding for Daytop's education and treatment services. Daytop, the second largest drug rehabilitation organization in the state, and all other such agencies must reapply for license and funding renewal from OASAS.
Founded in 1963, Daytop serves 1,600 clients a day, providing residential and outreach treatment in all five boroughs of New York and in Long Island, Westchester, Rockland, Dutchess and Sullivan counties. Since its inception, Daytop has graduated 200,000 people, saving lives and reuniting families in the process.
"Our mission and work are as critical as ever. The landscape of addiction is constantly changing and Daytop -- from the very beginning --continues to be a pioneering force in the field of substance abuse treatment," Daytop CEO Michael C. Dailey said. "Financing health care services has also evolved and with this fresh start, we are positioned to face today's funding challenges."
Daytop filed Chapter 11 in April 2012 citing $28.2 million in losses accumulated under previous management between 2006 and 2011. As part of the restructuring, Daytop agreed to sell its headquarters in midtown Manhattan for $32 million and lease space for its administrative offices.
CONTACT: OLIVIER GIBBONS
SOURCE Daytop Village, Inc.