(Reuters) – Ambulance operator Rural/Metro Corp… filed for Chapter 11 bankruptcy with the aim of cutting its debts after it missed an interest payment in July, according to court filings. The Scottsdale, Arizona-based company also intends to renegotiate unprofitable contracts and free up capital for investments through the bankruptcy process, according to the filings.
So, this is the same company who currently provides ambulance / paramedic service to the city of San Diego as well as the CSA-17, serving a lot of North County. The CSA-17 contract is up for bid now, and no doubt this bankrupt vendor will attempt to keep its contract by bidding for it. Interestingly, the City of San Diego contract should’ve already gone out for bid, but earlier this year embattled Mayor Bob Filner gave a no-bid extension of up to 2 years to Rural/Metro for service to the city. That extension must’ve been worth millions of dollars, but there has been little investigation re the negotiations that brought that to fruition.
Is it prudent for the County of San Diego be entertaining a potential contract bid from their current vendor who is now in Chapter 11 Bankruptcy? Inquiring minds want to know!
See the Chicago Tribune article link below for further details:
http://www.chicagotribune.com/business/sns-rt-us-ruralmetro-bankruptcy-20130804,0,7128679.story