wfn.org | MOTION IS FILED TO ENTER NBA BANKRUPTCY PROCEEDINGS

["Wilma Shuffitt" <wshuffitt@cm.disciples.org>]

Date: Nov. 16, 2004
Christian Church (Disciples of Christ)
Phone: 317-713-2492
E-mail: news@cm.disciples.org 
on the Web: http://www.disciples.org 

INDIANAPOLIS (Nov. 16, 2004) -- The Christian Church (Disciples of
Christ) has filed a motion to enter into the bankruptcy proceedings of
the National Benevolent Association (NBA).

The church's Administrative Committee unanimously agreed on Monday,
Nov. 15, to seek a role as a party of interest in the bankruptcy
proceedings. The Administrative Committee is responsible for regular
review and evaluation of the budgetary procedures, missional goals and
board memberships of the church's 11 general administrative units,
which includes NBA.

The church's motion must now be approved by the US Bankruptcy Court
for the Western District of Texas in San Antonio, Texas. 

NBA, the social and health services division of the church, filed
voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in
February. The St. Louis based not-for profit has operated at more than
90 locations in 20 states, and served approximately 20,000 people
through residential programs, day care centers, counseling services and
other programs. 

An auction of NBA's 11 senior living facilities is set to take place
in New York City on Thursday of this week.  The sale of the facilities
may bring in as much as $210 million to help repay creditors.

"We felt that this was an appropriate time to be named as a party of
interest in the bankruptcy litigation," stated Wm. Chris Hobgood, the
General Minister and President of the Christian Church (Disciples of
Christ).  "The church has had a covenant with NBA since its beginning
in 1887, during which time NBA has fulfilled its mission.  But we now
feel that with so many aspects of NBA's ministry changing, it is
important that we sit at the table to help discuss NBA's future."

In addition to the pending sale of its 11 senior living facilities, NBA
has sold or leased three of its six children's ministries.  

Hobgood noted that the decision to enter the case comes after months of
internal discussion.

"Our action is timely," said Hobgood. "Because of our
long-standing covenant with NBA and the trust that has been maintained,
we chose to wait as long as possible before taking action with the hope
that NBA's management and board would be successful in emerging from
their bankruptcy with their mission and ministry still clearly in place.
But it now appears that  NBA's services to children, seniors and
families may be significantly reduced, a change that is of great concern
to many people."

Church officials note that numerous attempts have been made to engage
NBA in meaningful dialogue about the implications of the bankruptcy
filing.  Both groups attempted to enhance lines of communication
following the church's biennial General Assembly in October 2003. A
task force was put into place, and issues were discussed several times
by conference call, although no face-to-face meetings were held.  A
mediator for the two parties was named in April of this year, but the
two sides remained unable to find appropriate times to schedule mutually
acceptable meetings.

"Although it's unclear what NBA's role will be in the future, it
is clear that God calls us to be faithful servants who help those least
able to help themselves," said Hobgood.  "We believe entering into
the litigation process is a way to honor the trust placed in the
Christian Church (Disciples of Christ) by the countless donors, friends,
and employees who throughout the years have given so generously of their
time and resources to this vital ministry."
 
Hobgood stressed that, while the church has no legal control over the
business practices of the NBA, that he intends to be proactive about
representing the interests of the church's membership in the future
legal proceedings.  Funding for the church's legal costs have been
paid for with donations received for this specific purpose.   

"Our actions should not be interpreted as a refutation of any part of
NBA," said Hobgood.  "We care deeply for the people who work for at
NBA as well as those who live in NBA facilities.  We will continue to
keep everyone concerned in our prayers."

NBA is one of 11 general units of the church.  The units carry out
various aspects of church ministry, ranging from the promotion of higher
education to administration of the church's pension fund.  Each unit
operates with considerable autonomy, under the leadership of its own
president and under the governance of its own board of directors.  Units
maintain a covenantal relationship with the general church. For more
information on the Christian Church (Disciples of Christ) and the
general units visit:  http://www.disciples.org 

A question and answer about the church's role with the NBA bankruptcy
proceedings is attached with this press release.

							 ####
Contact:
Wanda Bryant Wills
(317) 713-2492
news@cm.disciples.org 

Christian Church (Disciples of Christ)

 National Benevolent Association Bankruptcy: Questions and Answers from
Chris Hobgood, the General Minister and President, 11.16.04

1.  Q:	What is the relationship of the National Benevolent Association
to the Christian Church (Disciples of Christ)?	Aren't they one and the
same?

     A:   In corporate terms, NBA could be considered an "independent
affiliate" of the Christian Church (Disciples of Christ).  In our
denomination, historically, the different components of our faith -
congregations, regions, institutions of higher education and general
ministries maintain organizational and financial independence from each
other. NBA is one of those units.

2.   Q:  Were there Christian Church (Disciples of Christ)
representatives on the NBA Board when difficulties began with NBA's
financial status?

       A:  Yes, all members of that Board are Disciples.  The Office of
General Minister and President serves, ex-officio, on the NBA board as
well.  Previously, this role was filled by the Associate General
Minister and Vice President.  Since Bill Edwards' move, the General
Minister and President has represented the church on the NBA Board.

 
3.  Q:	Is NBA accountable to the Christian Church (Disciples of
Christ) in any way?

      A:  Each unit, such as NBA, is accountable to its own board of
directors and trustees.  Each ministry shares financial information. 
The denomination does not have decision-making authority over the
individual units or regions. However, the General Board's
Administrative Committee is responsible for the regular review and
evaluation of the budgetary and promotional procedures of the 11 general
units.

4.  Q:	Why did the denomination wait so long to enter the bankruptcy
proceedings?

      A:  The Christian Church (Disciples of Christ) has had a
long-term covenantal relationship with NBA since its beginning in 1887. 
During that time, NBA consistently carried out its mission of helping
children, seniors and families in need.  

	    But as NBA's reorganization plans have progressed, many
aspects of their ministry appear to be changing. The denomination feels
it is in the best interest of those being served by NBA, as well as our
members and donors, to have a seat at the table to discuss the future of
NBA. 

5.   Q:  Could or should the denomination have stepped in earlier to
avoid the situation?
 
       A:  Our role in this situation has been a process that began
with being primarily focused on intentional, covenantal, support of the
board and staff of the NBA.  We are now in a role that is more focused
on honoring and protecting the ultimate ministry of the NBA and the
trust of donors who have made a variety of gifts to their ministries.  

	     Church officials made numerous attempts to engage NBA in
meaningful dialogue about the implications of the bankruptcy filing on
several occasions.  After the church's biennial General Assembly in
October 2003, a task force was put into place and issues were discussed
on several conference calls.  No face-to-face meetings were held.  A
mediator was named in April of 2004 but we were unable to find
appropriate times and resources to schedule mutually acceptable
meetings.  

6.   Q:  Is the Christian Church (Disciples of Christ) financially at
risk due to the NBA bankruptcy?

       A:  No. NBA is legally separate from all other units of the
church and their debts are secured only by the assets of NBA.

7.   Q:  How will the NBA bankruptcy affect the financial condition of
the Christian Church (Disciples of Christ)?

       A:  There should not be much of an impact.  It should be noted
that NBA derived almost 97 percent of its budget from service fees,
investments, and other sources apart from the church.

8.   Q:  How will the Christian Church (Disciples of Christ) continue
its mission to serve those who have the greatest need? 

       A:  We're looking at a number of things.  If NBA is unable to
carry out its mission of serving the physical, emotional, mental and
spiritual needs of people in need, the church may need to develop ways
to continue those services.  At this point, we don't know what form of
ministry that might take.  

9.  Q:	What do you tell people, especially those who may live in NBA
facilities, the families, or others who may be concerned about the
future of NBA?

      A:  We are all feeling the deep grief as a result of the current
situation at NBA.   We know that there are people whose circumstances
will change because of the sale or transfer of NBA properties. Our
prayers are with them, as they confront these changes, and our wishes
are for a smooth transition to other services. 
 
	    But even though NBA is experiencing difficult times, the
Christian Church (Disciples of Christ) will continue its ministry of
"serving the least of these," regardless of the outcome of the legal and
financial issues that now confront NBA. 

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