Spring, Texas – On Thursday, November 18, 2021, Cypress Creek Emergency Medical Services (CCEMS) filed for Chapter 11 bankruptcy in the Houston Division of the United States Bankruptcy Court for the Southern District of Texas. The filing came on a payday less than a week after the company laid off over 60 employees.
The emergency services provider has been in turmoil since it lost its contract with Emergency Services District No. 11 in September 2020 after 16 years of partnership. CCEMS is still embroiled in long-running lawsuits and countersuits with ESD 11, who declined to renew the contract based on financial malfeasance and a lack of transparency on the part of CCEMS.
Filing for bankruptcy automatically pauses any judicial proceedings against the entity filing, including attempts to collect debts from them. Chapter 11 bankruptcy allows the entity to reorganize, often involving a submitted plan for them to stay in operation and pay debts over time. CCEMS has not released information regarding its plans during or after the bankruptcy case.