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Friday, February 10, 2012
STORYLINE MAAP executes plan to enter court protected bankruptcy. Reorganization fosters plan to rebuild after Clinic investment challenges MAAP’s finances
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MAAP executes plan to enter court protected bankruptcy. Reorganization fosters plan to rebuild after Clinic investment challenges MAAP’s finances
by Jan Wilcox, published on February 16, 2010 at 1:49 PM
MAAP, Inc. announced today that it has initiated a voluntary Chapter 11 reorganization case in the United States Bankruptcy Court.
“For over 30 years, MAAP has been a strong contributor in this community through the management of essential social service programs in alcohol and chemical dependency, mental health, and HIV/AIDS,” said Lorraine Rinker, MAAP’s recently appointed President and CEO. “MAAP and its Board of Directors believe this organization is valuable to the community we serve,” said Rinker. “Going through the Chapter 11 bankruptcy process is the best way we can save this organization and remain a vital contributor of social services to the underserved population in Northern California.”
“MAAP is a responsible steward of it's financial resources and unfortunately found itself in this position after investing three years and significant resources to start a new clinic in this community,” said Keith Longenbach, MAAP’s newly appointed Chief Financial Officer. “It just couldn’t continue the clinic operations in this current economic climate.”
MAAP is in the process of aligning its resources with the demands and needs of its business and clients going forward. With support from its newly rebuilt Board of Directors, MAAP has enhanced its leadership with the experience and skill to see this turn-around all the way through to a successful implementation.
Board Chairman, Marco Rodriguez stated, “Prior to opening the clinic MAAP had strong financial footing and it is only because of it's good faith work in opening this clinic that it finds itself in this situation. I’m confident that we will be able to successfully complete this bankruptcy to the satisfaction of the court and MAAP’s creditors.”
About MAAP, Inc.
MAAP, Inc. (also known as the Mexican American Alcoholism Program), is one of the largest, multi-ethnic, client-based non-profit organizations in Northern California. MAAP was founded as a Latino organization and continues to provide appropriate prevention and intervention services to the very ethnic diverse communities of Sacramento County and Central California.
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The "failure" as the writer stated above was not linked to the name of the organization but rather the former CEO and Board of Directors. However, I am glad to see that bigotry is alive and well along with ignorance. What type of logic is that? A company failed due to its' name? That is just ridiculous.
I am happy to see that MAAP has taken the initiative to restructure and make right what previous poor leadership made wrong. It seems that this reorganzation is the ethical way of dealing with a very financially challenging situation. I hope MAAP continues to provide the much needed services it has for the last 30 years.
I agree that branding is important however, the company has operated for 35 years and only within the last few did it change from it's full name to the acronym of MAAP. So, clearly it was not name related as I stated originally the current situation is as a direct result of poor managment by a consulting company that took it upon themselves to make horrible financial choices. It is that simple....