Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
National Ambulatory Services Firm Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 16, 2013
Key Contacts
Back
Rural/Metro, an ambulance and fire protection services company, announced it has filed for Chapter 11 bankruptcy protection. The company has already established a reorganization plan following an agreement with its lenders to reduce debt liabilities by half.
The company filed paperwork with the U.S. Bankruptcy Court in Wilmington, Delaware, and cited “significant challenges and disruptions operating its billing and collections functions [that resulted in] reduced revenue and delayed cash collections,” as the cause of its financial troubles. The services provider was purchased by Warburg Pincus in July 2011 for roughly $676.5 million. However, the company’s financial struggles have since worsened. Rural/Metro missed a July 15 interest payment on senior unsecured notes due in 2019, which prompted Standard & Poor’s to downgrade the debt and the corporate credit rating, according to Bloomberg.
Rural/Metro listed both assets and liabilities at more than $500 million in its court documents.
Under its proposed agreement with lenders, Rural/Metro said it will submit its reorganization plan by September 15. The company’s plan, which is subject to court approval, aims to eliminate half of its $735 million in funded debt by December 20. Rural/Metro noted its plans to renegotiate unprofitable contracts and free up capital to invest in its business, the St. Louis Dispatch reports. Lenders have agreed to provide Rural/Metro with $75 million in debtor-in-possession financing to meet its operational needs. Finally, holders of $308 million of senior notes would have their debt swapped for all of the reorganized company’s equity, and noteholders that are supporting the reorganization have also agreed to make a $135 million equity investment when the company exits bankruptcy proceedings, Bloomberg added.
The company currently provides fire and ambulance services to 21 states, as well as industrial fire protection services to airports, oil refineries, and manufacturing plants. Rural/Metro said that it expects to continue its operations throughout the reorganization process.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
National Ambulatory Services Firm Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Rural/Metro, an ambulance and fire protection services company, announced it has filed for Chapter 11 bankruptcy protection. The company has already established a reorganization plan following an agreement with its lenders to reduce debt liabilities by half.
The company filed paperwork with the U.S. Bankruptcy Court in Wilmington, Delaware, and cited “significant challenges and disruptions operating its billing and collections functions [that resulted in] reduced revenue and delayed cash collections,” as the cause of its financial troubles. The services provider was purchased by Warburg Pincus in July 2011 for roughly $676.5 million. However, the company’s financial struggles have since worsened. Rural/Metro missed a July 15 interest payment on senior unsecured notes due in 2019, which prompted Standard & Poor’s to downgrade the debt and the corporate credit rating, according to Bloomberg.
Rural/Metro listed both assets and liabilities at more than $500 million in its court documents.
Under its proposed agreement with lenders, Rural/Metro said it will submit its reorganization plan by September 15. The company’s plan, which is subject to court approval, aims to eliminate half of its $735 million in funded debt by December 20. Rural/Metro noted its plans to renegotiate unprofitable contracts and free up capital to invest in its business, the St. Louis Dispatch reports. Lenders have agreed to provide Rural/Metro with $75 million in debtor-in-possession financing to meet its operational needs. Finally, holders of $308 million of senior notes would have their debt swapped for all of the reorganized company’s equity, and noteholders that are supporting the reorganization have also agreed to make a $135 million equity investment when the company exits bankruptcy proceedings, Bloomberg added.
The company currently provides fire and ambulance services to 21 states, as well as industrial fire protection services to airports, oil refineries, and manufacturing plants. Rural/Metro said that it expects to continue its operations throughout the reorganization process.