Bankruptcy/Chapter 11 / Bonds
Rural/Metro Plan Effective
Rural/Metro’s First Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on December 17, 2013 and although the notice was docketed on January 2, 2014 the order states that the Plan became effective on December 31, 2013. Under the terms of the Plan, Rural/Metro’s bondholders are providing Rural/Metro with $135 million in new equity. According to documents filed with the Court, “Generally, the Plan provides for a consensual balance sheet restructuring that will reduce the Debtors’ funded indebtedness by approximately 50% and cut interest payments nearly in half.” “Today marks the successful completion of our financial restructuring and the start of a new chapter for our Company,” said Scott A. Bartos, president and chief executive officer of Rural/Metro. “As a stronger and more competitive company, we will continue to invest in infrastructure and technology and advance our commitment to providing state-of-the-art medical transportation and fire services.” This ambulance and fire protection services’ provider filed for Chapter 11 protection on August 4, 2013.
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