Private equity-backed ambulance operator Rural/Metro Corp has filed for Chapter 11 bankruptcy after failing to make an interest payment on its debts in July.
Rural/Metro, which is backed by private equity firm Warburg Pincus, disclosed that it had debts and assets of $500m each in court documents.
The company said its plans to cut its debt and interest payments in half have been approved by debt holders, which have also agreed to make an equity investment of $135m in Rural/Metro to complete its financial restructuring.
The company has already received $75m in debtor-in-possession financing from its secured lenders.
Rural/Metro CEO Scott Bartos said, “We have a solution that keeps our operations moving forward while cutting our debt in half.
“The significant infusion of new capital by our lenders underscores their confidence in the value of our business, and will help ensure that we have a strong financial footing to resume growth and investment while honoring our agreements and continuing to provide outstanding service and patient care.”
Warburg Pincus took the company private in a $438m deal back in June 2011.
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