The YMCA of Greater Pittsburgh wants to dismiss its chapter 11 case, saying that a recent lease settlement with its landlord that will allow it to reorganize and pay off other creditors outside of court protection, the Pittsburgh Post-Gazette reported. The YMCA filed for bankruptcy in May, citing the lease at its Downtown fitness center on Fifth Avenue near Market Square as the primary reason the nonprofit had an annual deficit of $1 million. In June — days after closing the facility — the YMCA reached a deal with landlord Millcraft Industries to pay more than $2.75 million it owes the real estate company over the next four years. It was paying about $100,000 monthly to Millcraft for the space. “The YMCA filed its bankruptcy when faced with catastrophic liabilities that would have arisen outside of bankruptcy if it breached the lease for the Downtown Y,” the nonprofit said in a motion to dismiss the case filed last week in U.S. Bankruptcy Court. “The court-approved settlement ... has fixed the YMCA’s liability [to Millcraft] and has otherwise allowed it to take necessary further steps so the YMCA can pay its trade creditors and meet its debt service obligations without the need for continued protection of the Bankruptcy Code,” it said in the court filing. The YMCA also wants to shed administrative expenses associated with a chapter 11 case, it said.
