When Bed Bath & Beyond, Christmas Tree Shops, or Tuesday Morning went out of business it made some people sad and left some open space in strip malls around the country. Fans of those brands may be upset, but there are still plenty of places that sell most of the same goods as those now-defunct (at least as brick-and-mortar retailers) brands.
Other retail bankruptcies had higher stakes. When it appeared David’s Bridal might not survive its Chapter 11 filing, that would have left thousands, maybe even tens of thousands, of brides without dresses they had already paid for.
Related: Popular ‘Shark Tank’ brand files Chapter 11 bankruptcy
That would have been a crisis, but the stakes were not life and death. Nobody has ever died of shame because their wedding dress did not arrive and there are numerous other places where a replacement dress could be purchased.
When it comes to the Chapter 11 bankruptcy filing of Air Methods, however, the stakes are dramatically higher. The company, which has continued operating after its filing entered bankruptcy with a plan that would eliminate $1.7 billion in debt that would see its creditors become its major shareholders.
Air Methods provides medical helicopter flights.
Image source: Air Methods.
Air Methods provides life-saving services
Air Methods grew from a single helicopter to become a massive national brand.
“In 1980, Roy Morgan founded Air Methods after a personal experience convinced him that properly equipped and staffed air medical service helicopters were a must. With one helicopter and a single hospital contract in Colorado, he pledged his commitment to safety and outstanding patient care,” the company shared on its website.
The company has grown dramatically since that modest start.
“Today, we hold those same values and are always ready to respond when it matters most. Annually, we conduct over 100,000 transports amassing over 150,000 flight hours,” Air Methods added.
Under the terms of its Chapter 11 filing, the company continued to pay its bills and its workers while operations continued normally, The proposed deal would provide the company, which operates 365 aircraft (mostly helicopters) from 275 bases in 47 states, with an additional $80 million in working capital.
Air Methods gains court approval
Air Methods emerged from bankruptcy with court approval on Dec. 29.
“Today marks an important inflection point for Air Methods in our transformation journey as we enter our next stage focused on investing in the business and executing on our growth initiatives for the benefit of our healthcare partners, communities, customers, and patients,” said CEO JaeLynn Williams.
The company had said at the time of its Chapter 11 filing that it planned to complete the process before the end of 2023. It made that deadline with two days to spare
“With a stronger balance sheet and additional financial resources, we remain focused on serving our contractual partners, opening new greenfield bases, optimizing our field operations, expanding our frontline team, and going in-network with commercial insurers. We are well-positioned for long-term success and excited about the opportunities ahead,” Williams added.
The new company has retained its previous management and emerges from the bankruptcy process in a better position.
“With increased financial flexibility and access to additional capital, we will be better positioned to continue opening new greenfield bases, accelerate our talent acquisition initiatives, execute on our growth initiatives, and equip more emergency personnel with the expertise needed to safely deliver the highest quality air medical care for generations to come,” Williams said in a media statement.
