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Rural/Metro Plan Filed

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Rural/Metro filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “Generally, the Plan provides for a consensual balance sheet restructuring that will reduce the Debtors’ funded indebtedness by approximately 50% and cut interest payments nearly in half. Specifically, the restructuring transactions contemplated in the Plan will substantially de-lever debt obligations by (i) partially paying down the prepetition senior secured facility by $50,000,000 and (ii) converting Noteholder Claims and Other Unsecured Claims (to the extent holders of Other Unsecured Claims elect to receive New Common Stock in lieu of Cash) into 100% of the common stock of Reorganized RMC subject to dilution only by: (A) the options to purchase the common stock of Reorganized RMC that may be issued to the Reorganized Debtors’ post-Effective Date directors, officers and employees pursuant to the Management Equity Plan described in Article XI hereof; and (B) the shares of common stock of Reorganized RMC issued pursuant to the Rights Offering (including any New Common Stock issued pursuant to the Rights Offering Backstop Commitment Agreement). The Debtors’ prepetition equity holders’ interests will be cancelled, and upon emergence, all of Reorganized RMC’s New Common Stock will be owned by the holders of Noteholder Claims (including those participating in the Rights Offering) and the holders of the Other Unsecured Claims (to the extent such holders of Other Unsecured Claim select to receive New Common Stock in lieu of Cash). Creditors holding Other Secured Claims will receive cash, their collateral, or retain their liens, as applicable, in satisfaction of their Claims.”

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