Lessor sues for $546,000 breach

An equipment financing company based in Pennsylvania has started a legal battle with a Texas company and guarantors who took out a leasing deal, alleging they owe more than $546,000 for breach of contract.

Susquehanna Commercial Finance has filed a lawsuit in US District Court for the Western District of Louisiana against GES Gladiator Energy Services Texas, Danny Prince and Steven Gantt, alleging failure to comply with the personal guaranty and the master lease agreement.

According to the documents presented to court, Susquehanna has suffered monetary damages for not receiving base rent of $546,352, plus penalties and interest from the defendants.

The leasing company claims that GES Gladiator Energy Services have defaulted by failing to pay the monthly basic rent payment due on 1 February, and all payments due thereafter.

Susquehanna Commercial Financing is seeking a trial by jury, judgment against the defendants for unpaid base rent of $546,3528, plus accrued late charges and default interest, all legal costs, fees, attorney fees, and expenses. The case is ongoing.

Bankruptcy challenge

In a separate legal challenge in the US bankruptcy court for the Southern District of Mississippi, lender US Bank Equipment Finance has filed a motion objecting to a proposal by Lifebrite Hospital Group to acquire all the assets owned by Pioneer Health Services (PHS) of North Carolina.

PHS filed for Chapter 11 bankruptcy in April 2016, but had previously taken on a lease agreement with US Bank Equipment Finance which provided a 48-month financing to support the acquisition of medical equipment.

US Bank Equipment Finance alleges that Pioneer is in default of its agreement on the lease and is requesting relief from the automatic bankruptcy stay on creditors so it can repossess the equipment.

PHS said in its bankruptcy filing, that it had suffered financial stress because of changes in the healthcare industry. These meant it was collecting fewer reimbursements, while also having to invest in an electronic health records system. In addition, insurance companies had issued denials for some hospital stays and there had been delays in payment.