A major essential company has now filed for an unexpected bankruptcy after falling into massive dept with its creditors.
“Air Methods provides critical services that literally mean the difference between life and death on a daily basis and for thousands of people each year,” reports TheStreet.
“The company has filed for Chapter 11 bankruptcy protection in order to put in place an agreement to restructure the company with its key debtholders.”
The company which currently has $1.7 billion in debt, would see its debt erased as its creditors become the majority shareholders in the company.
“Critical care does not begin in the emergency room. It begins at the scene of the accident or the moment a life-threatening illness strikes.
Air Methods has a talented workforce of over 4,500 team members, which includes the best in the air medical industry,” the company shared on its website.
Under the terms of the deal, all outstanding bills would be paid and workers would receive their full pay and benefits without any delays.
The company says that it is currently continuing normal operations.
The deal would provide Air Methods with a whopping $80 million in working capital.
CEO JaeLynn Williams said the deal was needed so the company could keep providing its lifesaving care services. “”
“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.
The company plans to complete the restructuring under court approval before the end of the year.
Other Economy News Today
The report shows that over 275,000 people left Florida and moved to another state in 2022.
Of those leaving Florida, 46,884 moved to Georgia, 42,301 moved to North Carolina, 36,200 to Tennessee, 31,456 to South Carolina, and 29,975 relocated to Texas.
Experts have weighed in stating that Florida residents are moving out of the state primarily due to the increasingly high insurance rates.
Newsweek reported, “Home insurance premiums have tripled in the state in the past five years, with residents currently paying on average more than $4,200 per year. The national average is $1,700.”
“When you have a home that’s one million dollars or less, your insurance premium becomes higher than your mortgage,” says Oscar Seikaly, chief executive of NSI Insurance Group.
The Wall Street Journal reported that even the mayor of Palm Beach County, Gregg Weiss, has decided to drop his insurance when the premium doubled to about $20,000.
“I know a lot of people who have done the same thing. The market doesn’t make sense anymore,” said the mayor.
While many residents are leaving Florida, California departures still significantly outweigh the state.
343,000 people left California and moved to another state in 2022, the highest number of any state in the country.
Of those leaving California, 102,000 moved to Texas, 74,000 to Arizona, 50,000 to Florida, and 48,000 to Nevada.
The rising costs of living, especially in younger people, are the primary cause of departures according to experts.
“We are losing younger folks, and I think we will see people continuing to migrate where housing costs are lower,” says Manuel Pastor, a professor at the University of Southern California.
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