Maryann Castronovo 12:30 p.m., May 25
Rural/Metro ambulance service has deep financial problems
Company missed critical bond payment this week
According to a detailed story in the San Jose Mercury News, Rural/Metro Corp., a privately-held ambulance operation serving San Diego County, is struggling to pay its bills. The Mercury News reports that Scottsdale-based Rural/Metro missed a crucial bond payment this week, and Santa Clara County officials are "scrambling to make sure backup plans are in place, should the situation deteriorate and a new provider is needed in a hurry," according to the Silicon Valley newspaper. The county's chief operating officer noted that Rural/Metro's debt has been downgraded to junk status.
Rural/Metro's California public affairs director emailed the newspaper, saying the company "continues to take action to align our operations and capital structure with the realities of our business." He said the board and management elected not to make the interest payment due on July 15 for unsecured bonds due in 2019.
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