Rural/Metro Corp. announced that the U.S. Bankruptcy Court for the District of Delaware confirmed its reorganization plan. Rural/Metro expects to formally emerge from Chapter 11 in the next few weeks.

Willkie Farr & Gallagher and Young Conaway Stargatt & Taylor are serving as legal counsel,Lazard Frères & Co. is serving as investment banker, and Alvarez & Marsal and FTI Consulting are serving as financial advisors.

Under the terms of the plan, Rural/Metro’s bondholders will provide the company with a new equity capital infusion of $135 million to help position the company for renewed growth. Over a 12-month period, Rural/Metro will invest $40 million in capital enhancements to add more than 70 new ambulances, six fire trucks and equipment including cardiac monitors and stretchers, as well as develop new billing and accounting systems.

“The Court’s confirmation of our plan is a major milestone for Rural/Metro, and we look forward to completing our financial restructuring and emerging as a stronger and more competitive company,” said Scott A. Bartos, president and CEO of Rural/Metro. “We will emerge with 50% less debt, greater capital flexibility and the resources to continue investing in patient care. I want to express my gratitude to our business partners and valued employees for their patience and support throughout this process, and I look forward to an exciting and prosperous future. Rural/Metro has become an operationally healthy and efficient company. We have aligned our operations and positioned ourselves for growth by investing in what matters most — caring for our patients and communities. We are enhancing our infrastructure and technology that support our state-of-the-art medical transportation and fire services. This transaction completes our formal restructuring process and cements our ability to provide long-term stability to the markets and customers we serve.”

“In early November, we reorganized our operational model to better support our front-line caregivers and meet the demands of today’s healthcare environment,” added Bartos. “Additionally, we introduced several exciting initiatives, including our Care3 program, to further our pursuit to become an employer of choice and a leading care provider across all areas of our business.”

Rural/Metro Corp. is a national provider of 911 emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities.