Jeannette EMS Inc. revealed in a bankruptcy court filing this week it has more than $850,000 in debts that will go unpaid once administrative costs are covered.
The ambulance service, which closed July 3, said in a bankruptcy filing that among the debts not secured by any collateral are a U.S. Small Business Administration disaster relief loan exceeding $339,000, and a $134,800 business loan from Silverline Services of Rockville Centre, N.Y., according to a filing in U.S. Bankruptcy Court in Pittsburgh. Its various debts totaled $1.19 million, including other business loans and money owed for fuel, printing services and worker’s compensation insurance.
Randy Highlands, former Jeannette EMS operations director, is disputing whether he is a co-debtor for that business loan from Silverline Services.
When the ambulance service filed to liquidate its holdings under Chapter 7 of the bankruptcy code Sept. 11, it had $834,000 in assets, including its ambulance base on South Second Street worth $300,000. It listed emergency medical services equipment worth $300,000 and $48,000 in vehicles.
Its biggest secured creditor, Key Bank, is owed $339,904 on a mortgage and line of credit. Key Bank had won a judgment in Westmoreland County Court in July to foreclose on the mortgage and line of credit, that had used the ambulance base and property as a collateral, as well as assorted emergency medical services equipment.
Jeannette EMS shed some of its debt by turning over two ambulances to the Irwin EMS in return for that agency assuming the $140,000 debt from a USDA loan.
While Jeannette EMS generated close to $500,000 in revenue in the six months it operated this year, putting it on pace to top the $590,200 in revenue in 2022, the filing also details the struggles that ambulance services face in getting paid for services.
Of the almost $176,000 in outstanding bills for providing 348 ambulance trips dating back to January, patients receiving service owed Jeannette EMS about $40,600 for 152 trips.
Health insurance providers owe the ambulance service money, according to the bankruptcy filing.
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