National Ambulatory Services Firm Seeks Chapter 11 Bankruptcy Protection
by Joel R. Glucksman on August 16, 2013
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.
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