Case Study: AeroCare

R&M Aviation d/b/a AeroCare Medical Transport System, Inc.


  • To facilitate a successful financial turnaround and lead it out of Chapter 11 Bankruptcy.
  • To develop a clear plan to address its $5.4 million secured debt and $4 million trade debt.
  • AeroCare’s lender swept all of the Company’s bank accounts and repossessed certain aircraft utilized by AeroCare leaving the company with no working capital.
  • Rally needed to formulate a restructuring strategy to stabilize operations, maintain revenues and regain the trust of vendors, employees, customers and lenders while maintaining existing operations.


  • The Rally staff recommended the immediate filing of a Chapter 11 Bankruptcy proceeding.
  • Rally professionals formulated a budget and obtained court approval for the use of cash collateral in order to sustain existing operations.
  • Rally monitored operations on a daily, weekly and monthly basis to ensure that estimates were being met or exceeded, bills were being paid on time and patient requests were being handled in a timely manner.


  • By restructuring its debt, eliminating divisions and unproductive employees, Rally was able to negotiate a settlement with the secured creditor.
  • Recovery to unsecured creditors exceeded expectations by more than 50%.
  • Rally was able to preserve more than 100 AeroCare jobs across the country.
  • AeroCare, after emerging from Bankruptcy on March 27, 2013, is now operating successfully with substantially reduced trade debt and without the significant costs associated with the bankruptcy process.
  • Rally Capital Services was awarded the Turnaround Management Association’s 2013 National and Regional Turnaround of the Year – Under $50 Million.

Company Profile

R&M Aviation, Inc. d/b/a AeroCare Medical Transport System, Inc. is a nationally recognized, accredited and award-winning provider of worldwide air ambulance and medivac services and commercial flight nurse escorts. The Company offers 24-hour emergency and non-emergency services, and it specializes in transporting patients from hospitals, rehabilitation centers, specialized care facilities and private residences. Since its founding approximately 20 years ago, the company has flown more than 10,000 patients in need of medical transportation throughout the United States and internationally.