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Air Methods Emerges from Chapter 11, Reduces Debt by $1.7B

January 02, 2024, 07:05 AM
Filed Under: Bankruptcy

Air Methods Corporation, the leading air medical service provider in the U.S., has successfully emerged from Chapter 11 with significantly reduced debt and increased liquidity that positions the Company for long-term success.

Air Methods is moving forward as an industry leader in air medical services and as an integral link between the nation’s top healthcare facilities and people in rural and remote communities. The Company continues to provide best-in-class clinical quality of care through its fleet of 365 medical helicopters and fixed-wing aircraft, operating from 275 bases and serving 47 states.

“Today marks an important inflection point for Air Methods in our transformation journey as we enter our next stage focused on investing in the business and executing on our growth initiatives for the benefit of our healthcare partners, communities, customers, and patients,” said Chief Executive Officer JaeLynn Williams. “With a stronger balance sheet and additional financial resources, we remain focused on serving our contractual partners, opening new greenfield bases, optimizing our field operations, expanding our frontline team, and going in-network with commercial insurers. We are well-positioned for long-term success and excited about the opportunities ahead.”

As a result of the restructuring process, Air Methods reduced its total debt by approximately $1.7 billion. Ownership of the business transitioned to the Company’s lenders and noteholders upon emergence, as contemplated by the prepackaged Plan of Reorganization, and certain of the new owners are investing approximately $185 million of new capital.

“We thank our teammates for their steadfast commitment to putting our mission to deliver lifesaving care into action every day,” said Williams. “We also appreciate the strong support from our financial stakeholders, who share our confidence in Air Methods’ future.”

Weil, Gotshal & Manges LLP served as legal advisor, Lazard served as financial advisor, and Alvarez & Marsal served as restructuring advisor to Air Methods.

David Polk & Wardwell LLP is serving as legal advisor and Evercore Group, L.L.C. is serving as financial advisor to the ad hoc group of lenders.







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