A Warburg Pincus venture files for Chapter 11 bankruptcy protection
Rural/Metro Corp., a private ambulance service provider, on Sunday filed for Chapter 11 bankruptcy protection. The company said it filed for the bankruptcy protection after reaching a deal with its creditors to trim most of its debt load to half.
Rural/Metro Corp is a Scottsdale, Arizona-based company. It is the country's biggest for-profit ambulance operator serving mostly rural communities. In its bankruptcy petition, the company reported debts exceeding US$500 million. The petition was filed at the U.S. Bankruptcy Court in Wilmington, Delaware.
"This agreement is good news for Rural/Metro and for the clients and communities we serve. We have a solution that keeps our operations moving forward while cutting our debt in half," said chief executive of Rural/Metro, Scott A. Bartos.
Warburg Pincus acquired the national ambulance operator in 2011 through a leveraged buyout. The company missed an interest payment of more than US$15 million in July. A Warburg representative, however, declined to comment when sought for one last Sunday.