Treatment center files Chapter 7
More than 500 companies and individuals may have potential claims totaling $225,000 against bankrupt Kids of El Paso Inc., according to court records in U.S. District Court. The controversial rehabilitation center for teenagers filed for bankruptcy under Chapter 7 of the federal bankruptcy statutes Monday, saying it had $86,000 in assets. A breakdown of detailed expenses and assets were not included in the bankruptcy documents. Two of the center's most vocal critics, *** and ***, are among those listed as creditors in KIDS' bankruptcy petition. ***, an attorney, and ***, a private investigator and former police officer, have assisted former patients who complained they were mistreated or held against their will at the treatment center. KIDS Chairman *** said the center doesn't owe *** or *** any money, but both have made public statements indicating they might have financial claims against KIDS in the future. *** has said he's helping about 20 disgruntled KIDS clients to prepare a class action suit against the center. "It's news to me that KIDS believes it owes me any money," *** said. *** said KIDS doesn't owe him money, "but it has cost me a lot of money over the years," mostly by helping runaway, clients with such things as' money for transportation. Court records show the KIDS board of directors, including ***, *** and ***, voted Oct. 4 to close the center and file for bankruptcy. Poor community support during a recent fund-raiser, a suit against an El Paso doctor and the fact that former KIDS clients were being asked to join a class-action suit were among topics discussed at the meeting *** said KIDS could no longer afford legal expenses to defend its state license, and had suffered a sharp drop in enrollment that he blamed on negative publicity. "It's news to me that KIDS believes It owes me any money." said ***.
