Air Methods Plans Bankruptcy Filing on Debt Load, Profit Hit

Air Methods Corp. is preparing to file for Chapter 11 bankruptcy protection, with first-lien lenders likely to take control of the air ambulance service, according to people with knowledge of the matter.

The company plans to file as soon as the end of October, though those plans could change, said the people, who asked not be identified discussing a private matter. Air Methods already has been given extensions to remedy a missed interest payment earlier this month, said one of the people.

The closely held medical transport company’s profits have been slashed by rising costs, higher interest rates and federal ...