(Bloomberg) -- Helicopter ambulance company Air Methods Corp. filed for Chapter 11 bankruptcy protection after it struggled to overcome a changing regulatory environment combined with higher interest rates. 

Air Methods listed assets and liabilities between $1 billion and $10 billion in a petition filed in the Southern District of Texas on Tuesday. It employs around 4,900 people. 

A majority of its first-lien lenders, bondholders and its shareholders have agreed on a restructuring plan to cut debt by about $1.7 billion, according to a company statement. A group of first-lien lenders committed to provide $80 million of debtor-in-possession financing, it said. 

The closely-held company had been holding talks with creditors after missing an interest payment on its debt, Bloomberg previously reported. Its profits have been slashed by rising costs for labor and fuel, rising interest rates and federal legislation aimed at protecting people from unexpected medical bills. 

In a court filing Tuesday, Air Methods said a new process for resolving claims disputes has elongated the time it takes to secure reimbursement from insurers and destabilized its cash flow. 

The legislation, known as the No Surprises Act, went into effect last year and has been cited by medical staffing firms, including American Physician Partners and Envision Healthcare Corp., in Chapter 11 filings earlier this year.

Air Methods also said an uptick in severe weather suppressed operations and cut into its earnings in the past year.

Private equity firm American Securities acquired the company in 2017. Air Methods expects to complete the restructuring by year end, it said in the statement.

(Updates with additional details throughout)

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