The Palmhurst City Council voted to extend its contract with Skyline EMS in September for at least two more years, following the ambulance provider’s bankruptcy filing this summer.

Palmhurst is one of two clients the company listed in its filings, along with contracts that service parts of Hidalgo and Jim Hogg counties.

Skyline filed for bankruptcy in July, reporting more than $4.2 million in debt in August, most of it owed to the Internal Revenue Service.

However, the company said it anticipates its revenues will allow it to successfully reorganize its finances during bankruptcy without any interruption in services.