Sure do.
May 15, 2009
Dear Parents and Consultants:
As you know, Hidden Lake Academy (“HLA”) began operating in 1994. HLA provides a unique approach to working with adolescents experiencing serious struggles with emotional and behavioral issues. HLA continually strives to provide its students with a superior academic, counseling, and therapeutic environment. During the last three years, HLA faced a severe legal attack on its ability to continue its mission. The litigation alleged various contractual related claims. As a result of this litigation, HLA incurred substantial legal fees that were not covered by insurance. During the litigation, student enrollment declined because HLA’s referral base was faced with voluminous discovery requests. This caused the referral base to incur legal fees and reduced their willingness to refer students to HLA. During this difficult time, HLA always maintained its unique educational, counseling, and therapeutic services. The good news is the parties reached an agreement resolving the litigation. Additionally, HLA has reestablished itself with its referral base, which is once again, solidly supportive of HLA and its educational mission. HLA continues to work through challenging financial situations caused by both the financial burden of litigation, and the overall downturn in the economy. At this time, HLA has worked diligently to resolve many of the financial burdens that resulted from the litigation. However, HLA has been unable to resolve issues with one of its lenders. HLA elected to take a proactive approach to resolve its issues by filing for Chapter 11 bankruptcy protection to reorganize its affairs. Chapter 11 is a business reorganization process. HLA will continue to operate both during and after the reorganization process. HLA will continue to provide the highest quality educational, clinical, and therapeutic services on an uninterrupted basis to its students. HLA is engaging in ongoing negations with potential lenders and is confident in its ability to address its financial issue. I know that each of you remains concerned about your child’s education and well-being. Let me take this opportunity to reassure each and every parent that everyone at HLA remains fully committed to continuing to provide the same superior academic, counseling and therapeutic services to its students it has since 1994. Our commitment is and will remain steadfast. I would like to personally thank each of you for your continued support during this challenging time. I am sure that this process will go smoothly and that your child will continue to thrive and excel at HLA. Sincerely, Len Buccellato, Ph.D.
