BRUNSWICK, Maine — Nearly two months after Merrymeeting Behavioral Health Associates abruptly closed its doors, leaving nearly 200 employees out of work and more than 400 clients who suffer from severe mental illness without services, the chief executive officer on Wednesday filed for Chapter 7 bankruptcy protection on behalf of the corporation.
The corporation, which provided case management, therapy and support services, claims $107,332 in assets and $266,636 in liabilities owed to between 200 and 999 unsecured creditors, including nearly 200 former employees.
Chief executive officer Jim Talbott has not filed for bankruptcy protection, the Bowdoinham man’s attorney, David P. Perkins, confirmed Wednesday. Talbott is listed as a co-debtor in the corporation’s filing.
Alexander Katopis of Portland, president, treasurer and clinical director; and Kacie Parker of Lewiston, vice president, secretary and human resources director, also are listed as general partners or shareholders of the corporation.
Among secured creditors, Merrymeeting Behavioral Health Associates owes Payroll Management of Auburn $198,577. According to the filing, Payroll Management already has filed suit against the corporation seeking to recoup those funds.
According to court documents, Merrymeeting Behavioral Health Associates leased its headquarters at 76 Pleasant St. in Brunswick from Triple T Realty. According to the mortgage for that property, Talbott is a member of Triple T Realty. Perkins confirmed on Wednesday that Talbott is the sole member.
The building was listed for sale with Sotheby’s shortly after MBHA closed.
MBHA claimed $1.2 million in gross revenue for the first four months of 2016. In 2015, the corporation’s gross revenue was $5.345 million, and $4.981 million in 2014.
The corporation notified state and local officials on March 28 that it would close on April 8. The letter, signed by Parker, cited pending changes to MaineCare reimbursement rates as the reason for the closure.
But on April 1, MBHA suddenly closed its doors, leaving workers unemployed and clients scrambling for services.
Jacob Pelletier of Auburn is among the former MBHA employees listed in the filing. Pelletier, a former mental health rehabilitation worker, said Wednesday that two weeks of pay was deposited in his checking account by the corporation in April, but it still owes him for a week of work plus mileage. According to Pelletier, employees were told by MBHA to file with the Maine Department of Labor to attempt to recover those funds through a wage and insurance fund.
“It stinks having to go through the insurance program, especially when it doesn’t give us back our mileage,” he said. “I had driven over 100 miles just that last day I worked, before they shut down. That’s probably $100 or $200 worth of gas.”
On Wednesday, Perkins said that while MBHA’s closure was prompted by a state announcement that it would cut reimbursement rates, the abruptness and chaos of the closure was prompted by media attention to the company’s announcement that it would close.
“The press got focused on that particular agency, and the agency’s bank got concerned and froze his accounts, and that caused the company to close and not to be able to meet its payroll,” Perkins said.
“He’s a guy that just lost his business,” Perkins said. “It’s sad for him, sad for the employees and sad for the clients.”