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Court Confirms Rural/Metro Bankruptcy Reorg Plan, Reduces Debt by 50%

Rural Metro Web Site Photo
Rural Metro Web Site Photo

SCOTTSDALE, AZ — (Marketwired) — 12/17/13 — Rural/Metro Corporation, a national provider of private ambulance and fire protection services in 21 states and nearly 700 communities, today announced that the U.S. Bankruptcy Court for the District of Delaware (“the Court”) has confirmed the Company’s Plan of Reorganization. Rural/Metro expects to formally emerge from Chapter 11 in the next few weeks.

“The Court’s confirmation of our plan is a major milestone for Rural/Metro, and we look forward to completing our financial restructuring and emerging as a stronger and more competitive company,” said Scott A. Bartos, President and Chief Executive Officer of Rural/Metro. “We will emerge with 50 percent less debt, greater capital flexibility and the resources to continue investing in patient care. I want to express my gratitude to our business partners and valued employees for their patience and support throughout this process, and I look forward to an exciting and prosperous future.”

Mr. Bartos continued, “Rural/Metro has become an operationally healthy and efficient company. We have aligned our operations and positioned ourselves for growth by investing in what matters most — caring for our patients and communities. We are enhancing our infrastructure and technology that support our state-of-the-art medical transportation and fire services. This transaction completes our formal restructuring process and cements our ability to provide long-term stability to the markets and customers we serve.”

Over a 12-month period, Rural/Metro will invest $40 million in capital enhancements to add more than 70 new ambulances, six fire trucks and equipment including cardiac monitors and stretchers, as well as develop new billing and accounting systems.

“In early November, we reorganized our operational model to better support our front-line caregivers and meet the demands of today’s healthcare environment,” added Mr. Bartos. “Additionally, we introduced several exciting initiatives, including our Care3 program, to further our pursuit to become an employer of choice and a leading care provider across all areas of our business.”

Under the terms of the Plan, Rural/Metro’s bondholders will provide the Company with a new equity capital infusion of $135 million to help position the Company for renewed growth.

Court filings and other documents concerning the restructuring process are available at www.donlinrecano.com/rmc. Interested parties can also contact Rural/Metro’s claims agent, Donlin, Recano & Company, Inc. directly by calling Rural/Metro’s restructuring hotline at 212-771-1128.

Willkie Farr & Gallagher LLP and Young Conaway Stargatt & Taylor, LLP are serving as legal counsel, Lazard Frères & Co. L.L.C. is serving as investment banker, and Alvarez & Marsal and FTI Consulting, Inc. are serving as financial advisors to Rural/Metro.

About Rural/Metro

Rural/Metro Corporation is a leading national provider of 911-emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. For more information, visit www.ruralmetro.com.

Written by First Arriving

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