What's Next After Rural/Metro Files For Bankruptcy?

August 5, 2013 Updated Aug 6, 2013 at 8:59 AM EDT

By HILARY LANE

...
August 5, 2013 Updated Aug 6, 2013 at 8:59 AM EDT

BUFFALO, N.Y. (WKBW)- Rural/Metro Corporation answers 12,000 emergency calls a year in the Buffalo area alone.

Now that the company has filed for bankruptcy, officials want to know, if it's still able to respond to emergencies.

"We'll be keeping a close watch on it." said Erie County Executive Mark Poloncarz. "Monitoring the situation to see if there are differences in the service's delivery patterns. If there are, we will call the Rural/Metro folks and say we need to change this."

To help us understand what's next for Rural/Metro, we turned to a local bankruptcy lawyer who meticulously examined the legal papers filed by the company.

"At this point there is no indication they would discontinue services, in fact to the contrary they indicated they plan to continue perform in the intended course of business," said Angela Miller, Bankruptcy Lawyer.

Rural/Metro's CEO says after years of declining profits and cash flow problems, something had to give.

The company says it plans to use the bankruptcy process to reduce debt by 50 percent and cut interest expenses in half.

Stakeholders are also agreeing to pump $135 million into the operation.