Air Methods, a private equity-owned medical helicopter company, has emerged from bankruptcy nearly two months after it filed for Chapter 11 protection, according to a report by Reuters.
Air Methods was acquired by private equity firm American Securities in 2017. Lenders and noteholders of the company now own Air Methods, according to the terms of the reorganization. Some of the new owners are injecting about $185 million into the company, according to the report.
The report noted that the restructuring process cut about $1.7bn of the company’s debt, Air Methods said. The firm entered bankruptcy with debt of about $2.24bn.
The business had suffered due to rising interest rates, higher labor costs and a recent U.S. ban on “surprise” medical bills, which are typically sent to patients who unwittingly receive transportation services or treatment from an out-of-network provider, despite visiting a hospital or other medical facility that is in-network for their insurance.
