Finance, Taxes, Insurance
Air Methods Files for Bankruptcy Protection
The helicopter air ambulance provider will continue to operate during restructuring
Air Methods Bell 407 (Photo: Air Methods)
Air Methods is hoping to exit bankruptcy protection quickly under a prearranged agreement with its first lien lenders. (Photo: Air Methods)

Air ambulance provider Air Methods has filed for Chapter 11 bankruptcy protection, calling the decision a strategic move to position it for long-term success.

Air Methods currently operates 365 aircraft—mainly helicopters—from 275 bases in 47 states. Under terms of the pre-packaged bankruptcy filing yesterday with the U.S. Bankruptcy Court for the Southern District of Texas, Air Methods will wipe out $1.7 billion in debt. It will also 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.

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