Obtains Approval to Borrow Up To $40 Million in DIP Financing on an Interim Basis
SCOTTSDALE, Ariz. (Aug. 6, 2013) – 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 approved the Company's "first day" motions.
The Court's approval of these motions, including granting interim approval for Rural/Metro to use $40 million of its $75 million Debtor-in Possession ("DIP") financing, will allow Rural/Metro to support its employees, customers, patients and communities and continue normal operations throughout the financial restructuring process. The Company is authorized to pay for all going-forward goods and services.
Separately, as previously announced, Rural/Metro's bondholders have committed to invest an additional $135 million of new equity in the Company, which will position the Company for renewed growth.
Additional information, including the terms of Rural/Metro's DIP agreement as well as Court filings and other documents concerning the restructuring process, is available on a dedicated website administered by Rural/Metro's claims agent, Donlin, Recano & Company, Inc., at www.donlinrecano.com/rmc.
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 Healthcare Industry Group, LLC and FTI Consulting, Inc. are serving as financial advisors to 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 the Company's website at www.ruralmetro.com.
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