If you are one of those few who have been waiting for your Southland Health Care stock certificate while the company and the brokerage firms fight it out, no need to worry any longer.
The two year saga of Larry Lunan’s efforts to refinance Southland and turn it into a healthy public company has officially come to an end with Friday’s disturbing news out of the company. As far as I am concerned, this one is now dead and buried. If you are holding a Southland certificate, it is little more than wallpaper, toilet paper, or kindling- your choice.
Apparently, the company was unable to make its insurance payments in January, and has subsequently shut down.
Hard to believe Lunan could not manage his way out of the mess with a company delivering over $40 million in revs, and profits, but that is indeed the way the cards have been turned over.
I doubt any sort of Phoenix can rise out of these ashes- To Lunan- a lot of people bet on you, and you failed miserably- myself included.
That’s the harsh reality. Forget about Bad Toys/Southland/Paladin- it’s over. If you haven’t taken some sort of tax loss on the investment, please talk to your accountant and find out if one is available.
I am an incurable optimist. I believe the press release is true—and the problem was late Medicare payments—which CAN be cured. You may well be right, but you areat least PREMATURE—as with CPNE.
Editor: If you read the press release, you should also note they lost their permits to provide service. Much as I would like to think differently, I believe it is highly likely it is all over.
So are you suggesting that PLHI.OB is now worth $0 (since the motorcycle businesses is pretty much non-existent). I think there is hope that Lunan will try to get the insurance paid and get Southland back running (maybe a part of the original operations).
” The successful efforts by GE Capital to block payments of mandatory services provided to Sulligent, a subsidiary of Southland, which included: dispatch, billing, and other required services reduced cash flow by an estimated $300,000. Instead of being available on an earned basis, this approximate $300,000 set idle in Sulligent Cash Account.”
That quote is from the press release, and i dont think its really incompetence of Lunan — but an unexpected outcome.
I am planning to buy if it goes down to $0.01.. and wait and see. Your thoughts please?
Thanks.
Editor: They lost their permits to provide service. I am going to assume they are now out of business. I guess anything is possible, but it seems the bell has tolled for thee, Mr. Lunan.
Mark,
Even at $0.01 it is overpriced, Lunun either could not or would not come up with $182 k to keep his only cash-cow breathing…it’s dead and it will not rise.
Editor: The dirt is being thrown on the coffin right now unfortunately. Bottom line- he viewed himself as a turn around specialist and he completely failed. Everything about his plan was a complete failure. I’m just telling it like it is.
I’ve accepted the fact that this thing is dead but still have questions. Why on earth would GE so aggressively go after Southland knowing that if it went south they will never get their money?
Why would the IRS let this company leave so many without health services and investors with losses rather than work out a way for Southland to finance its debts? Didn’t Southland claim to have financing to do just that?
Editor: Those are good questions, and I don’t have the answers. Perhaps they felt they were never going to get paid anyways, and got tired of having bad debt on their books in an environment where debt holders are looking to resolve outstanding issues.
In response to Mike W, I do not think it was a matter of GE being over-aggressive; they have carried Lunun and heard more of his broken promises than any of us investors did. Pretty much the same situation for with the IRS. The bottom line is the only thing either of them ever recieved from Lunun and Co was promises – there was certainly times he was liquid enough to attempt to pay, but he chose not to. Same with the liability insurance – I drive past the Lunan fortress on a daily basis, there is easily a million dollars worth of vehicles in front of his house, yet he chose not to make a $180k payment to keep the company alive. Doing a Google search this morning it just looks worse all the time, Mississippi has seized assets due to almost $800k in unpaid taxes, payroll checks bounced all over…which Lunan promised to “make them good” but that promise date has come and went without resolve… and now there are stories surfacing about missing 410k funds – my personal opinion is this situation goes far deeper than inherited debt.
Editor: As I thought- the Southland stock certs in my desk drawer are nothing but wall paper. It’s like cancer- you have to cut it out and move on so you can get healthy. We can dissect this thing till the cows come home, but in the end we are better off investing our attention in new ideas and seeing if we can find better ideas. Lunan was a miserable failure as “turn around” specialist- end of story. It’s disappointing, but it doesn’t change my life.
I worked for the crook @ Emergystat. He gave us less than 6 hours notice that we were without jobs. Our last payroll checks bounced. he owes us for another two weeks, which will make us unpaid for a months work.How many people can survive without a month’s pay. So why would you think he will pay any of his other debts. I hope he can sleep well at night!
Editor: I’m very sorry to hear that. Clearly, a lot of people were hurt by this guy’s failure to perform. Hope things come out OK for you.
I’m one who still has not received their worthless paper.
I’ve called, faxed copies of account statements to Krista without any success.
From what I’m seeing, it even Paladin looks like it’s going down the preverbial toilet too.
I would guess that Lunan and company may file for chapter 11 for that too.
Looks like all us investors got screwed really good without enjoying it.
Editor: You are just missing some worthless pieces of paper at this point in time. Forget it and move on.
Paladin Holdings, Inc. Releases Southland Update Regarding Ambulance Operations
Ambulance Services Reinstates Its Professional and Liability Insurance
February 04, 2008: 11:46 AM EST
Paladin Holdings, Inc. (OTCBB: PLHI) releases Southland update: On January 24, 2008, Southland was required to suspend all ambulance operations due to the lapse of its professional and liability insurance. Southland operates under the trade name “Emergystat.” Southland has successfully reinstated its professional and liability insurance policies as of February 1, 2008 effective January 24, 2008. Southland will immediately request reinstatement of its licenses in Alabama, Florida, Georgia, Virginia and Tennessee. The Company expects to be assisted by the state board as there is significant need for the Company’s Services. The Company believes it will commence operations in Alabama and Virginia almost immediately, quickly followed by Florida, Georgia, and Tennessee. Southland continues its efforts to obtain emergency payment from Medicare due to the delays caused by the Medicare payment system processing failures.
Several activities contributed to the cancellation of the Professional and Liability insurance. The successful efforts by General Electric Credit Corporation (GE) to block payments of mandatory services provided to Sulligent, a subsidiary of Southland, which included: dispatch, billing, and other required services reduced cash flow by an estimated $300,000. Instead of being available on an earned basis, this approximate $300,000 sits idle in Sulligent Cash Account. Additionally, Southland was notified on the liability insurance cancellation date, by the processor of Medicare payments for transports occurring in the State of Mississippi, that their system flaws caused weekly payments to be suspended and as a consequence Southland had not received payment since January 4, 2008. The processor had been contacted several times during the month but only on January 23, 2008 did it notify Southland of its system error. During this interim period, January 4 thru January 23, the processor reported to the Company that checks in excess of $300,000 had been written and forwarded, the information included: check number, check date, and check amount. Medicare owes Southland in excess of $1.3 million for transports occurring in the state of Mississippi. If these checks would have been received during the normal course, that amount would have been more than sufficient to have paid the liability insurance. Today, Southland is continuing to assist in the affected 911 areas by continuing to loan equipment and cooperating with all parties involved to see that the communities and families have the services they need.
Editor: Well, perhaps there is a glimmer of hope. However, just more evidence of the razor’s edge Lunan operates on. On little blip, and the doors are shut. Employees are furious, as are the creditors I am sure. Not too optimistic.
Mississippi seizes Emergystat assets
The Associated Press
JACKSON, Miss. — Mississippi tax officials have started seizing the property of an Alabama-based ambulance company that halted service on Thursday in 23 counties across the state.
Emergystat, based in Vernon, was the sole provider of emergency medical response service in the counties.
The company owes the state a “substantial” amount of money in unpaid income taxes going back to 2005, said Mississippi State Tax Commission spokeswoman Kathy Waterbury. She did not have a figure on the taxes owed.
Cars, ambulances, equipment and other Emergystat assets have been seized, Waterbury said.
Waterbury said the state will continue to seize items owned by Emergystat in every Mississippi county until the department satisfies all debts. If the company’s tax liabilities are not paid off, the items collected will go up for auction.
Meanwhile, the 23 counties affected by the shut down of Emergystat had alternative ambulance services in place Thursday.
“There was no interruption of service in any of the counties that were affected,” state Health Officer Dr. Ed Thompson said. “Interim arrangements have been made in all 23 counties.”
Thompson blamed the company’s problem on “the loss of liability insurance.”
Editor: Thanks for putting this up. The saga goes on.
Clinton 1/25/08
Emergystat Owes Mississippi Hundreds of Thousands
Emergystat Owes Mississippi Hundreds of Thousands
By David Kenney
david@wlbt.net
Thursday the ambulance service Emergystat stopped running in 23 Mississippi counties. Now state officials and former employees say the company owes them money.
The Mississippi State Tax commission says Emergystat’s financial problems begin with a looming debt owed to the Magnolia State.
The balance from tax withholdings: $787,715.30.
That’s money Emergystat took out of employees checks, but never paid to the state.
State Tax Commission Spokeswoman Kathy Waterbury says, “When it became apparent that they were shutting down business and looked to be leaving the state, we exercised those liens to protect the state’s interest and began seizing property that belongs to Emergystat.”
Some Emergystat employees say the checks the company had paid them last week bounced. Many of those paramedics were immediately hired by the various counties when they learned Emergystat was leaving. Every county has now replaced its ambulance service.
Kathy Waterbury says, “We have confiscated 11 ambulances. However, we have gone to each county and talked with county authorities and confirmed with them that they did not need the equipment in cases where they were providing service, or the other provider can come in to provide the emergency services that need the equipment, we have walked away from that equipment and left that with them.”
Emergystat’s seized equipment will eventually be auctioned off, and the money given right to the state, where it was supposed to go in the first place.
Kathy Waterbury says, “This is all general fund money. It goes to find state agencies and to do all the government services that the state needs and asks for.”
Editor: Owing back taxes always leads to events like this. Bye Bye Southland.
From:
http://firegeezer.com/2008/01/25/emergystat-ripples-become-waves/#comment-7697
“a group of us have consulted with the local magestrate and am in the process of sending the required 10 day notice about the returned checks giving him 10 days to make them good. If that fails to happen the the magistrate will sign felony and misdemeanor arrest warrants for the guy who’s name appears on the check. I would recommend that strategy if you want your paychecks to be honored.
Sean Dunne
Georgia Operations”
Editor: I don’t know how many employees read this, but if you do, there’s some information for you.
Well I call corp office today and someone answer that didnt know to much she did confirm that they were still in business and license reinstated. I am to call a Mr. Alan Walls monday he is suppose to answer any questions I have. I asked her about the spinoff cert the reply I got was they are working on it.
Editor: I’m not spending a dime of that money yet.
Paladin Holdings, Inc. Releases Southland Update Regarding Ambulance Operations
February 22, 2008: 12:21 PM EST
Paladin Holdings, Inc. (OTCBB: PLHI) releases Southland Health Services, Inc. (Southland) update: In the Southland press release dated February 4th, Southland successfully reinstated its professional and liability insurance policies as of February 1, 2008 effective January 24, 2008. The Company immediately started reinstatement procedures for its licenses in Alabama, Georgia, Virginia and Tennessee. The Company has reinstated 3 of its licenses and commenced operations in Alabama, Tennessee and Virginia and expects to begin transports in Georgia in the very near future.
The Company did not cease operations and had no plan to permanently shut down. Ambulance transports were temporarily suspended as required by law, due to the lapse in insurance caused by delayed receipts. The Company retains valuable and significant infrastructure with its trucks, dispatch center, software and key personnel. The Company has successfully reinstated limited operations and continues to bring trucks into service where there is a need and as staffing is secured. Currently the Company is staffing 13 trucks in service and is targeting to have 25 to 30 trucks in service over the next few weeks. A difficult and challenging task is at hand to return the operations back to its previous levels. However, with the existing infrastructure, the Ambulance Operations can be reestablished with a new and improved customer payor mix. This should allow the Company to have improved profitability derived from smaller operations.
The Company understands the magnitude of the disruption to its employees, the communities and its shareholders. Southland continues, through its various subsidiaries, to explore all potential market expansion possibilities through new contractual opportunities and potential acquisitions.
Editor: Glad they are at least operational again.
I never received my southland shares. Does it even matter?
Editor: Highly unlikely in my view, but you never know.
What about the $400,000+ Larry is now in default with to NS Fund I LLC. He appears to continue to not honor his obligations.
Editor: I’m guessing he probably can’t. I gave up on this one some time ago.
Talked to Lunan the other day, and he said that they have discovered that T. Alan Walls and Dubley Bell have embezzled over $1.5 million from Southaland since Jan. 1, 2008. Some of the local banks would cash company checks and deposit into their personal accounts. Found this out in July. Have turned the information over to the FBI and the ABI (Alabama). Trying to get an attorney to go after the banks for the company checks deposited into personal accounts.
Editor: Always someone else who done it. Sounds like Titan Global all over again. At some point, management either has to take the blame for mismanagement, or take the blame for failing to put in the proper controls to supervise their own people.
is any body reading this and how can i get in touch with this alan walls
Editor: No idea
I hold Bad Toys and Southland Health Services stock certificates. Are either of these worth a tinker’s damn..?
Editor: Unfortunately, wall paper for your bathroom. Same with my certs. A tinker’s damn? That’s a great old phrase you don’t hear very often.
Is southland still in operations? I just noticed some activity today with the stock.
Editor: Yes- it is officially dead. The CEO informed me they uncovered a lot of fraud and embezzlement, but I don’t know what that might do for shareholders at anytime down the road.