Air ambulance provider Air Methods has received approval for its pre-packaged Chapter 11 reorganization plan from the U.S. Bankruptcy Court for the Southern District of Texas. Air Methods continues to operate normally since filing for bankruptcy protection on October 24 and said it expects to emerge from Chapter 11 before year-end. The reorganization plan was approved by the company’s lenders and noteholders and will reduce its overall debt by $1.7 billion while infusing it with $185 million of fresh capital from investors.
“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 Air Methods CEO JaeLynn Williams. She said the company will continue executing “growth initiatives, including opening new greenfield bases, growing our frontline team, and going in-network with additional commercial insurers.”
Air Methods operates 365 aircraft—mainly helicopters—from 275 bases in 47 states. It was acquired by private equity firm American Securities for $2.5 billion in 2017, when it operated from more than 300 bases. In its bankruptcy filing, it listed liabilities estimated at between $1 billion and $10 billion.