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UMOM takes over homeless youth services from bankrupt Tumbleweed

Weve accomplished the Number 1 goal in a way that is very gratifying, Kroop said. All of the young people (who receive Tumbleweed services), their lives will notbe any further affected or related atall to what happens in the bankruptcy case.

The next step in the bankruptcy proceedings is to sell four pieces of real estate and liquidate Tumbleweeds remaining assets to pay off creditors, Kroop said.

According to court documents, Tumbleweed owes about $1.3 million on two Wells Fargo loans,about $198,000 on a private note, just over $41,000 on a Gateway Commercial Bank loan, and about $570,000 –including more than $26,000 owed to UMOM for rent –to other creditors for things such as rent payments and credit-card debt.

UMOM is not assuming any of Tumbleweeds debt, Newsomsaid.

Continuing critical services

When Tumbleweed announced its financial difficulties late last year, about a half-dozen foundations and private donors donated hundreds of thousands of dollars to make sure all youth services continued and to assist with the transition to UMOM.

Newsom said nearly all of Tumbleweeds 115 employees will transfer to UMOM, though some responsibilities will change.

She said the inherited programs will remain under the Tumbleweed name because of thename recognition.

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