Company misses interest payment

Rural/metro closer to default on notes

A missed interest payment by Rural/Metro Corp. pushes the privately held company closer to a default on its notes, though the Scottsdale provider of fire and ambulance services says it is operating normally.

“Rural/Metro continues to take action to align our operations and capital structure with the realities of our business,” said a company spokesman in an e-mail message. “As part of these initiatives, our board and management team recently elected not to make the interest payment due on July 15 for our unsecured bonds due in 2019.”

The company said it will not comment further regarding the matter at this time. “From an operational perspective, it is business as usual

at Rural/Metro,” the spokesman said. “We remain committed, as always, to providing life-saving services to our customers and communities.”

Rural/Metro provides ambulance and fire services in roughly 700 communities in 21 states, including Arizona. Its PMT Ambulance subsidiary serves 200,000 patients annually in Chandler, Scottsdale, Tempe, Peoria, Paradise Valley and Guadalupe. Its Southwest Ambulance unit, the largest ambulance-transport service in the state, responds to 225,000 calls for assistance each year, operating in Maricopa, Pima, Pinal and Graham counties.

The company also says it operates the second-largest fire service in Arizona, serving areas including Fountain Hills, Cave Creek and Carefree.