Cypress Creek EMS files for bankruptcy
CYPRESS CREEK – A beleaguered ambulance service that serves about 600,000 people in northern Harris County appears to be on life support after reaching an agreement with Emergency Services District 11.
Cypress Creek EMS has been the subject of multiple investigations by KPRC2 Investigates and law enforcement.
In 2019, KPRC2 Investigates went undercover to reveal a scheme that lined the pockets of some employees. These were employees paid from public funds. To date, no one has been criminally charged in connection with this scheme.
Now, a mediated agreement between ESD 11 and Cypress Creek EMS has yielded a windfall for the Emergency Services District. Among the concessions, according to a bankruptcy court filing:
A) ESD11 is paid $413,500 in cash ($350,000 from Travelers Casualty and Surety Company of America (the D&O insurer of CCEMS), $50,000 from Koronis, a total of $13,500 from current/former director and officer third party defendants (other than Bradley England)
B) Debtor remit ESD11 distributions of FEMA claim of approximately $380,000 described in Docket #77 (final payment amount will be determined by FEMA and the State of Texas)
C) ESD11 will receive an authorized and unsecured claim of $2,500,000.00
D) The debtor agrees to promptly draft, file and pursue a liquidation plan to exit the bankruptcy case
E) The mediating parties (excluding the Travelers) will support the Debtor’s liquidation plan as long as it complies with the settlement no later than May 13, 2022 (and the Travelers will not oppose it)
F) All proofs of claim filed in this bankruptcy case by current and former directors and officers of the Debtor (being the third party defendants) shall be deemed withdrawn and will receive no distribution in this bankruptcy case. These parties will not file any further proof of claim in this bankruptcy case.
G) Debtor Must File Motion for Settlement Approval by April 29, 2022 and Request Expedited Review
Former Cypress Creek EMS public relations officer Miranda Sevcik told KPRC2 Investigates this statement, contained in a bankruptcy court document, when asked for a response to the coverage of the mediated agreement:
“The parties expressly acknowledge, agree and understand that this Agreement constitutes a compromise and settlement of disputed claims, including the avoidance of costs, fees and expenses associated with such disputed claims, and that no aspect or provision of this Agreement shall not be construed to be a legal or factual admission or confession by either party of any wrongdoing, contractual or extracontractual obligation, or of any moral, legal or financial liability.Neither the Agreement, nor its execution, nor the performance of any of its terms, nor any of its contents shall constitute evidence as an admission of liability, or insurance coverage, or any other factor indicating that any claim at issue in the litigation is valid.”
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