Rural/Metro Corp. has told the city of Rochester officials that its financial issues will cause no service problems for Rochester, Mayor Thomas Richards said Friday.
The Scottsdale, Ariz.-based provider of ambulance and fire services missed an interest payment and is in danger of defaulting on its bonds, a report in the Arizona Republic newspaper said. The Wall Street Journal reported Rural/Metro is preparing for possible bankruptcy filing.
“The city is aware of the reports surrounding Rural/Metro Corp.’s financial situation and we have discussed the situation with the company’s management,” Richards said in a statement.
“The city’s agreement with Rural/Metro provides various options for the city to step in should there be a service problem. Locally, we have experienced no degradation of service and we have been assured there will be none. That being said, we are closely monitoring the situation and will remain in touch with the corporation’s senior management.”
Rural/Metro is owned by affiliates of private-equity firm Warburg Pincus LLC.
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