Air Methods Corporation (“Air Methods” or the “Company”), the leading air medical service provider in the U.S., announced today that it has entered into a Restructuring Support Agreement (“RSA”) with (i) majorities of its first lien lenders and bondholders and (ii) its equity sponsor under which such key stakeholders have agreed to support an expedited balance sheet restructuring. Implementing the restructuring contemplated by the RSA will reduce the Company’s total debt by approximately $1.7 billion, increase liquidity and position the business for long-term success by allowing it to focus on its growth and development strategies.

“We are pleased to have reached this agreement with our key stakeholders, which will enable Air Methods to continue supporting patients with lifesaving care and serving as an integral link between the nation’s top healthcare facilities and people in rural and remote communities,” said Chief Executive Officer JaeLynn Williams. “Over the past year, we have made meaningful progress optimizing our field operations, going in-network with leading commercial insurers and improving our cost structure. We’ve also seen record numbers of transports, and we’ve opened several new bases across the country this year as there is a great demand for air medical services. By strengthening our balance sheet, we are taking an important step forward in delivering on our transformation plan while answering every call with the highest level of service and patient care.”

To implement the restructuring contemplated by the RSA, Air Methods and certain of its affiliates initiated today voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas. The prepackaged Chapter 11 process provides an orderly forum for Air Methods to implement the balance sheet restructuring efficiently and quickly. Additionally, the restructuring contemplated by the RSA provides for vendors and suppliers to be paid in full, and for teammates to continue receiving their pay and benefits without interruption. Pursuant to the RSA, the Company has already obtained the requisite support from its stakeholders to confirm the plan of reorganization and, due to this broad support, Air Methods expects to complete this process on an expedited basis and emerge from Chapter 11 with an optimal capital structure by year end.

“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,” said Williams. “We appreciate the support of our debtholders and equity sponsor in enabling us to achieve this positive outcome. I also thank our team members across the country who put our mission into action every day. Together with our healthcare and community partners, we will continue to close the gap between our patients and the critical care they need.”

In connection with the court-supervised process, Air Methods has obtained commitments for $80 million of debtor-in-possession financing from the first lien lenders party to the RSA. Following court approval, this new financing will provide sufficient liquidity to support the Company’s financial obligations and day-to-day operations during this process, including the payment of employee wages and benefits, suppliers, partners, and vendors in the ordinary course of business.

Air Methods is operating normally and without service interruptions as it moves through the court-supervised process. This includes continuing to serve partner hospitals, healthcare systems and customers with the Company’s fleet of 365 medical helicopters and fixed-wing aircraft from 275 bases serving 47 states.

Additionally, the Company’s United Rotorcraft and Blue Hawaiian businesses are operating normally. Blue Hawaiian, the largest provider of helicopter tours and charter flights in Hawaii, is not included in the Company’s court-supervised process.

Additional Information

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; by calling Epiq representatives at (877) 506-0331 within the U.S. & Canada (or +1 (503) 854-0296 internationally for calls originating outside of the U.S.); or by sending an email to AirMethods@epiqglobal.com.

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.

Forward-Looking Statements

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 RSA; the chapter 11 cases; the DIP 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 confirm and consummate a plan of reorganization in accordance with the terms of the “pre-packaged” chapter 11 cases; the ability of the Company to comply with the terms of the RSA and DIP financing and the risk of termination of the RSA; the Company’s ability to obtain sufficient votes and requisite court approvals; the ability of the Company to successfully execute the transactions contemplated by the RSA 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.