Debt-free & rebuilding: YMCA of Metro Milwaukee gets a fresh start



MILWAUKEE (WITI) -- The YMCA of Metropolitan Milwaukee is now debt-free. The organization applied for bankruptcy protection in June 2014 -- more than $29 million in debt. It's been working to get rid of that debt ever since.

Essentially what happened on Friday, January 30th was the United States Bankruptcy Court approved a debt restructuring plan for the whole organization. It includes paying back more than $4 million in cash to the bank. It also means closing the doors on the South Shore YMCA.

"In every iteration of our plan, as a business decision, South Shore just was never going to be part of our future footprint," said Julie Tolan, CEO of YMCA of Metropolitan Milwaukee.

But according to Tolan, the loss of the South Shore facility made it possible to help secure a future for the rest of the organization.

"This is a very exciting moment," said Tolan. "We will move forward and certainly philanthropy will be a big step forward for us. But we are going to be able to bring our programs out in the community in ways we've never done before."

Over the last eight months, the YMCA built a plan with its creditors and partners to restructure the Milwaukee YMCA. Part of that plan was to sell 70 percent of its properties and a charter school.

"We now have no debt, we have a very viable business model going forward, and we've got the love and appreciation of so many community members who are determined to see that in partnership with us, we will succeed," said Tolan.

Tolan says there is a chance down the road someone could buy the South Shore facility from the bank. But the YMCA would not play a role in that.