Judge OKs CEDU sale
Posted: Saturday, Aug 13, 2005 - 10:54:39 am PDT
By ELIZABETH CIEPIELA
Hagadone News Network
BONNERS FERRY -- The papers are signed, the judge has approved the sale and four former CEDU properties have a new owner -- and a new future in the therapeutic schools industry.
Friday, a U.S. Bankruptcy court of Delaware judge approved Universal Health Services' bid of $10 million for the properties.
The properties and programs included in the bid are the former Ascent Therapeutic Adventure Program, Boulder Creek Academy, Rocky Mountain Academy and Northwest Academy. Milestones Transitional Program is tied up in litigation and was not included in the sale.
Brown Schools Bankruptcy Trustee George Miller helped make it all happen, testifying before the judge Friday.
Debra Osteen, UHS vice president, said the company plans to restore the properties to a therapeutic schools program and wants to hire former CEDU staff from North Idaho.
"I never thought it would not open. I just wasn't sure how long it would take," said Linda Shaffer, an educational consultant based in Sandpoint who has worked in therapeutic schools before.
UHS is one of the largest hospital and healthcare management companies in the nation, and employs more than 30,000 people. Shaffer has heard that representatives of its behavioral health branch wish to meet with former CEDU management to help shape the schools under new ownership.
"Any large organization that purchases a system like this, one of the keys is to be sure to bring in people who've worked in this industry for some time ... who have been part of past successes," Shaffer said.
"I knew there were lots of people out there who had already figured out that when you get a paycheck that's connected in some way in helping kids save their own lives, that there are huge rewards for everyone -- not only the staff and the families and the children ... but for the community as well."
On Friday, March 25, Brown Schools closed abruptly with no warning, citing financial insolvency and filing Chapter 7 bankruptcy. The sudden closure left about 290 people in Boundary and Bonner counties without work. Until its sudden closing, CEDU tied with the Boundary County School District as the county's largest employer.
On Thursday, June 30, Miller identified UHS as the best offer for the former CEDU properties.
Paul Johnson, former director of Boulder Creek Academy, said he anticipates the coming weeks will be busy.
"I'm very pleased to hear that they want to work with management and staff," he said. "We have a lot of great people out here. We have a lot of good really dedicated staff who have proved themselves over the years that they are very effective in helping kids."
"I've gotten calls and talked to consultants who are very excited at the prospect of Boulder Creek and Northwest and Ascent opening reopening because they have students they would like to place in schools, which is very encouraging to me."
CEDU Running Springs
Chabad of Los Angeles, a Jewish organization, has purchased the acreage and buildings which once housed CEDU School in Running Springs. The Aug. 10 auction was held in Philadelphia with Chabad paying $4.3 million for the local property.
King George
(July 28, 2006) Universal Health Services, owner of Northwest Academy, Boulder Creek and Ascent in Idaho, Provo Canyon and Center for Change in Utah, and King George School in Vermont, announced that despite rumors that they might be the next target of a leveraged buyout, they are not having talks with any private equity firms.
