KidsPeace Corp., the owner of a nonprofit psychiatric hospital for teenagers in Pennsylvania, filed for bankruptcy, blaming government spending cuts for its financial woes, Bloomberg News reported yesterday. The company will try to use bankruptcy to reduce its bond debt to $24 million from $51.3 million and to trim pension obligations that may exceed $100 million, according to an affidavit filed yesterday by Chief Executive Officer William R. Isemann. KidsPeace owes creditors more than $100 million and has assets valued at less than $50 million, according to its chapter 11 filing.
