Air Methods Files Bankruptcy After Rates, Regulation Hit Profits

Helicopter ambulance company Air Methods Corp. filed for Chapter 11 bankruptcy protection after it struggled to overcome a changing regulatory environment combined with higher interest rates.

Air Methods listed assets and liabilities between $1 billion and $10 billion in a petition filed in the Southern District of Texas on Tuesday. It employs around 4,900 people.

A majority of its first-lien lenders, bondholders and its shareholders have agreed on a restructuring plan to cut debt by about $1.7 billion, according to a company statement. A group of first-lien lenders committed to provide $80 million of debtor-in-possession financing, it said.

The ...