Rural/Metro Corp. files for bankruptcy | News
(WBIR-Scottsdale, Ariz.) Rural/Metro Corporation announced Monday it has filed for Chapter 11 bankruptcy.
The national provider of ambulances and fire protection services said it plans to use this process as a time to restructure financially, cutting its debt by approximately 50 percent. The company's bondholders have reached an agreement to invest $135 million additional dollars during this restructuring process.
According to a Rural/Metro release, operations should continue as normal throughout the process, including services in East Tennessee. East Tennessee Division General Manager Rob Webb said the company's filing for bankruptcy should not impact customers.
"Rural/Metro will continue to meet all of our contractual obligations, including maintaining excellent medical and fire protection services to the citizens we serve here," said Webb. Scott A.
Bartos, Rural/Metro's new president and CEO, said filing for Chapter 11 will put the company in a better position to serve customers.
"We remain committed to serving our clients and communities, maintaining our relationships with vendors and supporting our employees whose hard work and dedication are critical to our success," explained Bartos. "We expect to move through this process quickly and to be stronger, more competitive and more profitable organization."
Knox County Mayor Tim Burchett said if Rural/Metro doesn't fulfill its obligations, the county will take action.
"I have spoken with Rural/Metro's leadership and they've assured me that their operations in Knox County will continue as normal," said Burchett. "Their contract with Knox County contains provisions in the event that they are unable to fulfill their obligations. If their obligations are not met, Knox County will take appropriate action. In the meantime, my staff and I will continue to monitor Rural/Metro's financial situation."
Rural/Metro anticipates it will complete its restructuring process this year.
The national corporation based in Scottsdale, Ariz. is the leading national provider of 991-emergency and non-emergency ambulance services and private fire protection services. Rural/Metro operates in 21 states and nearly 700 communities, employing more than 800 firefighters, paramedics, EMTs, among other staff.