Nesquehoning's solicitor has filed an objection to a company's motion to abandon assets in bankruptcy court.

During the borough's monthly council meeting on Wednesday, attorney Robert Yurchak told the board that the Municipal Energy Managers' attorney has filed a motion to abandon assets of the company's accounts receivable, which is about $500,000."I filed an objection to that," he said, adding that there is a hearing in bankruptcy court scheduled for July.Yurchak said Nesquehoning has about $1.5 million wrapped up in the issue with MEM.The problem 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 Oliphant 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 $431,200 30-year loan 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 that they never received.MEM principals Robert J. Kearns and Patrick J. McLaine were charged with theft in the Bethlehem incident.In June 2012, 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 $1,521,332.03 in the suit against MEM, but nothing has been paid to date.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.In other matters, council voted to drop the appeal in the case of the police chief's contract case.Yurchak said Police Chief Shawn Smith appealed the judge's ruling that came down last year, and a mutual agreement was reached to drop the appeal.He said the borough has not yet reached an agreement with the chief on his contract. Negotiations are still taking place.