Nesquehoning received notice that the trustee of a company that took $1.5 million from the borough then went bankrupt wants to sell property free and clear of liens to PPL Electric Utilities.

The letter from the United States Bankruptcy Court for the Middle District of Pennsylvania, received June 15, states that the trustee of Municipal Energy Managers Inc. is seeking approval from creditors and other parties to sell property of MEM's estate "free and clear of all liens and encumbrances, with all valid liens and encumbrances to be transferred to the fund created by said sale."This means that if the items are sold off, Nesquehoning will most likely never see any of the money it is owed.The terms of the sale are that for $10,000, "the estate will sell free and clear all of the debtor's and the debtor's bankruptcy estate's causes of action, rights and claims, scheduled or unscheduled, against PPL Corporation and all of PPL's subsidiaries and affiliates, including PPL Electric Utilities Corporation. The sale is to be contingent on the receipt of higher bids."The letter asks any parties who object to the sale to file with the bankruptcy clerk in Wilkes-Barre. If no objections are received, the court will act on the request without a hearing.There was no discussion on the letter during the meeting and no action was taken by Nesquehoning on Tuesday.The issue with MEM stems from 2008, when representatives from MEM made a presentation to council about the possibility of the borough buying its streetlights from PPL and hiring MEM to do the maintenance. The company, based in Olyphant at the time, told the board that it would help Nesquehoning qualify to get a cheaper electric rate and deliver over $1 million in savings over 20 years.At the time, Nesquehoning council members decided the option would fit them and signed with the company, taking out a loan for $431,200 over 30 years to cover the cost. The borough joined other area municipalities, including Lansford, Coaldale and Tamaqua, in hiring the company for lighting services.In July 2010, nearly two years after a number of municipalities signed on with the company and had not received any services that were promised, MEM filed a complaint with the Pennsylvania Public Utilities Commission against PPL Electric Utilities because, the company claimed, "PPLEU is dragging its feet on plans to have the municipalities buy streetlights rather than lease them from the electric company."But problems with the company continued, and promises continued to be broken.In March 2011, Nesquehoning and other municipalities took legal action against MEM.In February 2012, a Northampton County grand jury began an investigation into the company in connection with allegations of defrauding Bethlehem Township. At that time, MEM had failed to follow through with its contracts to Nesquehoning, Coaldale, Lansford and Tamaqua, leaving the municipalities responsible for paying back hundreds of thousands of dollars in loans for services they never received.MEM principals Robert J. Kearns and Patrick J. McLaine were charged with theft in the Bethlehem incident.In June 2012, Nesquehoning solicitor Robert Yurchak filed a motion seeking judgment of over $2 million against MEM for failing to live up to its contract and receiving over $415,000 from the borough. The case was heard by Carbon County Judge Steven R. Serfass.A ruling came back on the case in December, awarding Nesquehoning $1,521,332 in the suit against MEM, but nothing was ever paid before the company went bankrupt.In February 2014, criminal charges against Kearns and McLaine were dropped because Lehigh County Judge Kelly L. Banach ruled there wasn't enough evidence to support a criminal case.Last June, Yurchak filed an objection on behalf of the borough to MEM's motion to abandon its assets of its accounts receivable, which was about $500,000.