Nebraska service provider seeks bankruptcy shield - KHGI-TV/KWNB-TV/KHGI-CD-Grand Island, Kearney, Hastings

Nebraska service provider seeks bankruptcy shield

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GERING, Neb. (AP) - A western Nebraska nonprofit corporation that provides social services says it is filing for bankruptcy protection from its creditors.

The agency is Gering-based Community Action Partnership of Western Nebraska. It runs more than 45 programs, including Head Start and a medical clinic. Its money comes from fees, grants, fundraising and government sources.

Interim executive director Margo Hartman says the intention is "to get this into a stable spot and keep providing services."

The Chapter 11 filing will let the corporation reorganize its debts. Hartman says there would be no immediate effect on employees or services but says some programs eventually could be eliminated if they aren't financially viable.

The agency's financial setbacks are blamed on federal funding problems, high claims for its self-funded insurance program and financial reporting issues.

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