Ambulance and fire protection service provider Rural/Metro Corp. filed for Chapter 11 bankruptcy reorganization after reaching a deal with its lenders to cut its debt by about half.
The company, which provides services in 21 states including Ohio, expects to continue its operations throughout the reorganization process. Rural/Metro operates a local station on Midlothian Boulevard in Youngstown.
Lenders have agreed to provide the company $75 million in debtor-in-possession financing to meet its operational needs. Rural/Metro said it will also receive a cash infusion of $135 million as part of its agreement with lenders and bondholders.
The company noted that its capital structure was created "under different economic circumstances, and making interest payments on the debt while at the same time investing in operations was more than the company's earnings could support."