US bankruptcy court approves Air Methods restructuring plan
Air Methods Corporation announced that the company has received approval from the US Bankruptcy Court for the Southern District of Texas for its Chapter 11 restructuring plan.
The restructuring plan will reduce the air ambulance provider’s debt by $1.7bn. The plan also envisages a capital injection $185m.
“We look forward to moving ahead with a substantially stronger balance sheet and additional financial flexibility as we continue providing industry-leading air medical service to our healthcare partners, communities, customers and patients,” said JaeLynn Williams, CEO.
“With an optimal capital structure, Air Methods will be even better positioned to continue investing in our business and executing on our growth initiatives – including opening new greenfield bases, growing our frontline team and going in-network with additional commercial insurers – for the benefit of those we serve.”
Weil, Gotshal & Manges is serving as legal adviser. Lazard is acting as financial adviser and Alvarez & Marsal is serving as restructuring adviser to Air Methods.
Air Methods has filed for Chapter 11 bankruptcy protection on October 24th. In its filing, the company said its business had suffered due to high operating costs, rising interest rates and the enforcement of US No Surprises Act which banned, as the name suggests, surprise bills.
Meanwhile, read how the industry reacted to Air Methods’ Chapter 11 filing here.