Ammon Analytical Laboratories, Inc.

Information for Creditors of Ammon Analytical Laboratories, Inc.

Case Number 22-14534 in the United States Bankruptcy Court for the District of New Jersey


Ammon Analytical Laboratories, Inc., also known as AmmonLabs, filed for Chapter 11 bankruptcy on June 7, 2022. The Debtor is a laboratory testing company providing services to healthcare professionals nationwide. The company provides a wide variety of testing, including toxicology, addiction medicine, clinical blood testing, COVID testing, and telehealth testing.

Ammon Labs has its primary facility and operations in Linden, New Jersey. It also has a secondary facility in Webster, Massachusetts. As of the filing of the bankruptcy case, the Debtor had 83 total employees, including 21 salaried employees and 62 hourly employees.

The Debtor was established in 1998 and aims to provide the highest quality laboratory testing for healthcare professional available in the country, according to its website. Its CEO, Stephen Haupt, has served in that role for more than 22 years. Mr. Haupt and his family own 100% of the company.


The Debtor’s bankruptcy filed was precipitated by at least three distinct events, according to a declaration filed by the Debtor’s CEO, Mr. Haupt. First, in 2018, the Department of Justice began an investigation into Ammon’s Medicare billing practices. This investigation lasted years and led to Ammon losing a substantial amount of its business, estimated to be at least 50% of the company’s total business at that time, and more than $500,000 per month in revenue. The Debtor defended itself and no charges have been filed, but the loss of revenue and legal costs depleted the Debtor’s cash.

Second, in early 2021, NJ Medicaid modified its policies to reduce payments for certain tests and eliminate approval for other tests, resulting in lost revenues for the Debtor of approximately $14 million per year.

Third, the COVID-19 pandemic reduced testing by up to 60% for several months. All three of these issues compounded to severely stress the Debtor’s resources, and it ended up missing certain payments to creditors as a result.


Before the bankruptcy case was filed, BioReference Laboratories, Inc. got a judgment against the Debtor for amounts owed. Additionally, De Lage Landen, an equipment finance lender, had a judgment. These creditors were taking action to collect on their judgments and the Debtor filed for bankruptcy in order to preserve its value.

Through the bankruptcy case, Ammon Laboratories hopes to reorganize its debts and get back on track to repaying all of its creditors. It has relatively little secured debt, with a balance of less than $1.3 million, so it should be able to provide some recovery to unsecured creditors.

In bankruptcy ,unsecured creditors are protected in various ways, including by their ability to form a committee of creditors to protect their rights. A committee is able to hire counsel at the debtor’s expense and has fiduciary duties to all unsecured creditors. Committees are often able to negotiate better treatment for creditors. If you have any questions, please reach out to PRLT for a no obligation consultation.

PRLT does not represent Ammon Analytical Laboratories, Inc. or any of its affiliates. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Ammon Laboratories bankruptcy case or anything discussed on this page, please contact us.

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