12/06/2023 | Press release | Distributed by Public on 12/06/2023 12:37
Expects to Emerge from Chapter 11 by Year End
DENVER, CO - December 6, 2023 - Air Methods Corporation ("Air Methods" or the "Company"), the leading air medical service provider in the U.S., announced today that the U.S. Bankruptcy Court for the Southern District of Texas (the "Court") confirmed the Company's prepackaged Plan of Reorganization (the "Plan"). Air Methods, which has continued to operate normally throughout the court-supervised restructuring process, expects to emerge from Chapter 11 before the end of the year.
"We look forward to moving ahead with a substantially stronger balance sheet and additional financial flexibility as we continue providing industry-leading air medical service to our healthcare partners, communities, customers and patients," said Chief Executive Officer JaeLynn Williams. "With an optimal capital structure, Air Methods will be even better positioned to continue investing in our business and executing on our growth initiatives - including opening new greenfield bases, growing our frontline team and going in-network with additional commercial insurers - for the benefit of those we serve."
The Plan was unanimously approved by both classes entitled to vote (the prepetition secured lenders and the prepetition unsecured noteholders). Implementing the Plan confirmed by the Court will reduce Air Methods' total debt by approximately $1.7 billion and enable it to emerge from the court-supervised process with sufficient liquidity to position the Company for success and support the Company into the future, supported by the investment of approximately $185 million of new capital by members of the ad hoc group.
"We appreciate the support of our key financial stakeholders, which has enabled us to reach this milestone on an expedited basis," said Williams. "We also are grateful to our teammates for their unwavering commitment to safely delivering outstanding patient care, and we thank our partners for their ongoing support of Air Methods and our key role in the nation's healthcare infrastructure."
Additional information regarding the Company's court-supervised process is available at www.AirMethodsRestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company's claims agent, Epiq, at https://dm.epiq11.com/AirMethods.
Weil, Gotshal & Manges LLP is serving as legal advisor, Lazard is serving as financial advisor and Alvarez & Marsal is serving as restructuring advisor to Air Methods. Davis Polk & Wardwell LLP is serving as legal advisor and Evercore Group, L.L.C. is serving as financial advisor to the ad hoc group of lenders.
About Air Methods
Air Methods is the nation's leading air medical service, delivering lifesaving care to more than 100,000 people every year. With more than 40 years of air medical experience, Air Methods is the preferred partner for hospitals and one of the nation's largest community-based providers of air medical services. United Rotorcraft is the Company's products division specializing in the design and manufacture of aeromedical and aerospace technology. Air Methods' fleet of owned, leased and maintained aircraft includes approximately 390 helicopters and fixed-wing aircraft. For additional information, please visit airmethods.com.
Certain statements in this press release constitute "forward-looking statements." Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "projects," "estimates," "assumes," "may," "should," "could," "shall," "will," "seeks," "targets," "future," or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance, or achievements could differ materially from future results, performance, or achievements expressed in these forward-looking statements. Such statements include, but are not limited to, statements relating to: the terms of and potential transactions contemplated by the Plan; the Chapter 11 cases; the debtor-in-possession financing; and management's strategy, plans, opportunities, objectives, expectations, or intentions and descriptions of assumptions underlying any of the above matters and other statements that are not historical fact. These forward-looking statements are based on the Company's current beliefs, intentions, and expectations and are not guarantees or indicative of future performance, nor should any conclusions be drawn or assumptions be made as to any potential outcome of any potential transactions or strategic initiatives the Company considers. Risks and uncertainties relating to the proposed restructuring include: the ability of the Company to obtain confirmation of and consummate the Plan in accordance with its terms; the ability of the Company to comply with the terms of the Plan and debtor-in-possession financing and the risk of termination of the "Restructuring Support Agreement" related thereto; the Company's ability to obtain requisite court approvals for the Plan and transactions contemplated thereby; the ability of the Company to execute the transactions contemplated by the Plan successfully without substantial disruption to its business; and the effects of disruption from the proposed restructuring on the Company's operations, including its financial condition and liquidity, and the difficulty to maintain business, financing, and operational relationships. These factors, risks, and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond the Company's control. New factors, risks, and uncertainties emerge from time to time, and it is not possible for management to predict all such factors, risks, and uncertainties. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the Company's objectives and plans will be achieved. These forward-looking statements speak only as of the date such statements were made or any earlier date indicated, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in underlying assumptions, or otherwise. If the Company were in any particular instance to update or correct a forward-looking statement, investors and others should not conclude that the Company would make additional updates or corrections thereafter.
Andy Brimmer / Aura Reinhard
Joele Frank, Wilkinson Brimmer Katcher