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Exhibit 10.58
CONTACT: Liz Merritt, Rural/Metro Corporation
(480) 606-3337
Morgen-Walke Associates
Investor Relations: Jim Byers
(415) 296-7383
Media Relations: Christopher Katis
(415) 296-7383
Wire Services: Eric Gonzales
(212) 850-5600
RURAL/METRO CORPORATION GRANTED BANK WAIVER EXTENSION
SCOTTSDALE, ARIZ. (Oct. 18, 2000) - Rural/Metro Corporation (Nasdaq:
RURL) announced today it has been granted an extension of its waiver of covenant
compliance under its revolving credit facility, through January 31, 2001.
Jack Brucker, President and Chief Executive Officer, said, "We have
maintained an excellent working relationship with our lenders, evidenced by
their confidence in our ability to continue to build upon our fundamental
strength as a national leader in our industry."
Terms of the waiver are unchanged from the prior waiver period. The
Company will continue to accrue an additional 2 percent interest expense, with
cash payment deferred through the waiver period. The Company will continue to
work toward a long-term agreement on its revolving credit facility.
Brucker continued, "We have demonstrated to our lenders during the last
nine months that Rural/Metro is a strong operating company that provides
necessary and vital services to a growing segment of the population. We have
made great strides to improve our balance sheet, increase cash flow, enhance the
quality of our revenue and service our debt. We believe our future is bright,
and the Company will continue to gain strength through the effective management
of positive cash flow."
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Rural/Metro Corporation provides mobile healthcare services, including
emergency and non-emergency ambulance transportation, fire protection and other
safety-related services to municipal, residential, commercial and industrial
customers in more than 400 communities throughout the United States and Latin
America.
Except for the historical information contained herein, this press
release contains forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially. These risks and
uncertainties include the long-term success of the Company's restructuring
initiative, the ability to continue discussions with its lenders, to secure a
permanent lending facility, improve operating margins, expedite the collection
process, and effectively manage working capital requirements, and other factors
and risks disclosed from time to time in the Company's SEC reports and filings.
By making these forward-looking statements, the Company undertakes no obligation
to update these statements (including statements concerning the status of
negotiations with its lenders) for revisions or changes after the date of this
press release.
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