Air Methods Files for Bankruptcy Protection | AIN

Air Ambulance provider Air Methods filed for Chapter 11 bankruptcy protection this month. Under the terms of the pre-packaged bankruptcy filing yesterday with the U.S. Bankruptcy Court for the Southern District of Texas, Air Methods will do away with $1.7 billion in debt. Moreover, Air Methods will increase its liquidity with $80 million of debtor-in-possession financing from the first lien lenders who are party to the restructuring support agreement (RSA) that is part of the bankruptcy filing.  In 2017, the private equity firm American Securities acquired Aith Methods for $2.5 billion. In its bankruptcy filing, it listed liabilities estimated at between $1 billion and $10 billion. Air Methods Telemedicine LLC, and Mercy Air Service Inc., are some of the numerous Air Method entities that the filing covers. In a released statement Air Methods expressed that vendors, suppliers, and employees would be paid in full and without interruption during the bankruptcy process, and all subsidiary companies would continue normal operations. According to Air Methods, the filing and its terms have the support of the “majorities of its first lien lenders and bondholders.” 

“The bankruptcy filing, coupled with recent performance improvements, would allow the company to continue to provide the highest level of service and patient care.” – Air Methods CEO JaeLynn Williams

Source: Air Methods Files for Bankruptcy Protection

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