Eagle’s View Academy files for Chapter 11 reorganization
Eagle’s View Academy, a nonprofit K-12 Christian school on Jacksonville’s Westside, filed for a Chapter 11 bankruptcy reorganization, seeking to reorganize a large tax debt.
The Chapter 11 petition filed on Sept. 13 by Eagle’s View Academy Inc. says the school has $807,121 in mortgage debt outstanding, but its biggest problem is nearly $1 million owed to the Internal Revenue Service.
“The Debtor is currently behind on payroll taxes and intends on curing the arrears through a Chapter 11 plan,” Eagle’s View said in a case management summary filed in U.S. Bankruptcy Court in Jacksonville.
“The Debtor in 2008 went through some director and officer changes. For a time during the change and afterwards the business started to experience cash flow issues. During those times the business fell behind on (IRS Form) 941 payroll taxes,” it said.
“This amount drastically began to increase largely based upon interest and penalties. The Internal Revenue Service began to garnish bank accounts that threatened to shut down operations entirely,” it said.
Eagle’s View’s attorney, Jason Burgess, said the school’s operations will continue as normal during the Chapter 11 process.
According to its website, Eagle’s View is a nonprofit school founded in 1995 by a group of Christian teachers, but it is not affiliated with any specific church.
It has 45 employees, according to the case management summary. The filing does not list the number of students, but Burgess said enrollment is about 400.
The Chapter 11 petition listed $2.08 million in total assets and $1.85 in liabilities. The petition also said Eagle’s View has taken in $1.39 million in gross receipts year-to-date, after taking in receipts of $2.45 million last year.