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.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
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.