Rural/Metro receives default notice on 9 7/8% senior subordinated notes, 12¾% discount notes

By Caroline Salls

Pittsburgh, Feb. 28 - Rural/Metro Corp. received a notice of default from the indenture trustee for its 9 7/8% senior subordinated notes due 2015 and its 12¾% senior discount notes due 2016 for failure to file its 10-Q for the quarter ended Dec. 31, according to a company news release.

The company has 60 days, or until April 23, to cure the default by filing the 10-Q with the Securities and Exchange Commission, and Rural/Metro said it expects to file the report within the 60-day cure period.

According to the release, the company said on Feb. 12 that it needs additional time to file the 10-Q because of the restatement of consolidated financial statements for the fiscal year ended June 30, 2006 and the quarters ended March 31, 2006 and Sept. 30, 2006.

Rural/Metro said a failure to observe any covenant under the indentures also constitutes an event of default under its credit facility and could lead to an acceleration of the unpaid principal and accrued interest.

Rural/Metro is a Scottsdale, Ariz.-based provider of medical transportation and private fire protection services.

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