Rural/Metro Corporation and Affiliates Plan of Reorganization Confirmed Less Than Five Months After Filing

December 20, 2013

Willkie successfully represents ambulance company Rural/Metro Corporation and 65 of its affiliates, in confirmation of their prenegotiated chapter 11 plan.

Willkie successfully represented ambulance company Rural/Metro Corporation, a Warburg Pincus portfolio company, and 65 of its affiliates, in confirmation of their prenegotiated chapter 11 plan of reorganization less than five months after its chapter 11 filing.

Rural/Metro’s Plan of Reorganization was supported by 100 percent of its Lenders and Noteholders and by an overwhelming majority of its unsecured creditors. The majority of the objections to the Plan were resolved prior to the confirmation hearing. The remaining objections were overruled by the Honorable Judge Carey at the hearing. Under Rural/Metro’s Plan, the secured lenders will receive a $50 million paydown of their prepetition debt and continue as lenders for the reorganized company. Noteholders will receive a pro rata share of a portion of the reorganized common stock and, if they chose to participate in the rights offering, the remainder of the common stock and the reorganized company's preferred stock.

General unsecured creditors had the opportunity to opt for either a distribution of common stock or a share of an unsecured cash pool. The rights offering is fully funded and will provide Rural/Metro with a $135 million equity infusion upon emergence. In addition to focusing on negotiating a fully consensual plan, Willkie was also faced with addressing numerous informal discovery requests from their Lenders and Noteholders and the Official Committee of Unsecured Creditors. The Company’s plan of reorganization is expected to go effective within the next few weeks after regulatory approval is obtained.

The matter was handled by a multidisciplinary Willkie team, including bankruptcy partners Matthew Feldman and Rachel Strickland; corporate partners Steven Gartner, William Hiller and David Boston; litigation partner Todd Cosenza; communications, media & privacy special counsel Michael Jones, associates Daniel Forman, Ji Kim, Andrew Mordkoff, Ann Harrington, Mia Ellis, Josh Troy, Shaimaa Hussein, Mia Hayes and Daniel Bumpus.