Air Methods provides medical helicopter flights.

Usually, when a company files Chapter 11 bankruptcy it’s a sad situation for the employees who may lose their jobs and customers who may see a favorite brand go away. A filing does not mean that a liquidation or shutdown is imminent, but some companies that plan to reorganize their finances in order to continue operating aren’t able to do that.

In recent months both David’s Bridal and Party City emerged from Chapter 11 with new owners, less debt, and new capitalization. Christmas Tree Shops, Bed Bath & Beyond, and Tuesday morning could not make that happen. 

Related: Popular retailer abruptly shuts down

In those last three cases, the end was slow as the still-popular companies tried to find a funding lifeline. All three went through a period where the lights were on, but inventory was sparse and the end seemed imminent unless a savior emerged.     

For Mitchell Gold + Bob Williams, an upscale furniture maker and retailer that operated 27 stores across 14 states, the end was more abrupt. The company simply shut its doors on the weekend of Aug. 26-27 after filing a Worker Adjustment and Retraining Notification Act (or WARN) notice filed in North Carolina.

That document, which is a legal requirement, said that the company was “unable to secure critical financing to continue business operations.”

It was a harsh ending for a well-known brand, but as sad as people might be about the closing or any of the retailers that did not survive a Chapter 11 filing, none of them faced any danger from the shutdown. That’s not the case for customers of Air Methods, a medical helicopter transport company that has filed for Chapter 11 bankruptcy protection.

Air Methods has a plan to survive bankruptcy

Air Methods provides critical care as it transports patients from accident scenes, or other health crisis situations to a hospital. The company describes its services on its website.

“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.

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.

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. Air Methods, which currently has $1.7 billion in debt would see that debt erased as its creditors become the majority shareholders in the company. 

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 is continuing normal operations during currently.

The 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.

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.

Air Methods expects to complete its restructuring, which requires court approval, before the end of the year.