The Town of Fountain Hills will be watching closely as Rural/Metro Corp. works its way through a Chapter 11 bankruptcy process, according to Town Manager Ken Buchanan.

“At this point it is a wait and see scenario,” Buchanan said it a statement released Monday afternoon. “It is too early for the town to make any determinations about the contract other than to ensure that services continue uninterrupted while the bankruptcy process runs its course.”

Rural/Metro announced Sunday that it had reached an agreement in principle with lenders and bondholders in an effort to reduce the company debt going forward.

That agreement calls for the company to file for Chapter 11 bankruptcy, which has been done.

A statement on the Rural/Metro website says “the company intends to use the process to significantly reduce its debt, renegotiate unprofitable contracts and free up capital for investments to strengthen its business and further improve patient care.”

The Town of Fountain Hills is currently in the final year of a five-year contract with Rural/Metro. Rural/Metro has been the emergency services provider for Fountain Hills dating back to development days prior to incorporation. The company was earlier under contract with the Fountain Hills Fire District.

The Chapter 11 restructuring is expected to be completed in the fourth quarter of 2013.