Companies in the news
Companies in the news
Coram debtholders agree to waive payments
Coram (Denver) principal debt holders agreed to forego interest payments totaling up to $13 million on the company’s series A and series B notes. Coram will not be required to pay interest on the notes from Nov. 15 until either May 15 or the final resolution of Coram’s litigation with Aetna U.S. Healthcare (Blue Bell, PA), whichever comes first.
Coram said its debtholders have also waived any non-compliance with certain financial covenants set forth in the company’s senior credit facility for the period ending Dec. 31. The waivers demonstrate a commitment on the part of its debtholders to a management plan for restoring profitability, Coram said.
In addition, Coram Executive Vice President/CFO Wendy Simpson resigned, effective Nov. 26, after playing an integral role in achieving the concessions from debtholders. The company said it has begun a search for a new CFO.
GF gets downgrade from Moody’s
Graham-Field Health Products’ (GF; Bay Shore, NY) $35 million senior secured revolving credit facility due 2000 has been downgraded to Caa1 from B2 by Moody’s Investors Service (New York). The rating outlook is negative, Moody’s said.
"The rating action follows Graham-Field’s recent announcement that it is out of compliance with its senior credit agreement as of Sept. 30 and that it doesn’t expect to be incompliance as of Dec. 31." Moody’s added that while the company is seeking a waiver of the covenant default and is pursuing alternative financing sources, lenders have the right to require immediate payment of all borrowings. The agency said if such a demand for payment is made, it would trigger a cross default under the subordinated note indenture, and GF would likely see Chapter 11 bankruptcy protection.
HAHI sees increased sales in 1Q00
Help At Home (Chicago) reported 1Q00 ended Sept. 30 sales of $7.9 million, compared to 1Q99 sales of $6.7 million. The company posted a net income in 1Q00 of $111,000, 6 cents per share, up from a net income in 1Q99 of $101,000, 5 cents per share.
Horizon Pharmacies makes acquisitions
Horizon Pharmacies (Denison, TX) signed a letter of intent to acquire an independent chain of four retail pharmacies and one home medical equipment provider in Indiana. Combined annual sales for the independent chain is $13 million for FY98.
Horizon’s strategic plan, said President/CEO Rick McCord, is to create the total healthcare concept, offering one-stop shopping to customers.
The letter of intent is non-binding and is subject to the negotiation and execution of a definitive contract between the two parties.
Interwest receives provider agreements
Interwest Home Medical (Salt Lake City) has obtained assignment of all the provider agreements acquired with the HealthCor Holdings (Dallas) acquisition and a three-year, extended-term preferred provider agreement with Altius Healthcare. The provider agreements in Colorado represent the majority of the revenues acquired from HealthCor and were either amended or assigned to Interwest with the same conditions as the original agreements.
The Altius agreement replaces the previous provider agreement that was acquired by Altius through its acquisition of PacifiCare’s Utah plans. Interwest has been Altius’ primary provider of home medical equipment services for several years, the company said.
Invacare product receives FDA approval
Invacare (Elyria, OH) received Food and Drug Administration (Washington) clearance on the Invacare Venture HomeFill Complete Home Oxygen System, developed by Invacare in response to Medicare oxygen reimbursement cuts. The HomeFill system is an oxygen-filling system that works in conjunction with a specially adapted Invacare six-liter oxygen concentrator. The system allows a patient to fill his or her own high-pressure oxygen cylinders, eliminating time-consuming and costly service calls to the oxygen provider.
Option Care teams with Blue Cross of CA
Option Care (Bannockburn, IL) signed a home infusion therapy agreement with Blue Cross of California. Under the terms of the agreement, Option Care will provide alternate site and home IV therapy services to more than four million Blue Cross members throughout California. Option Care operates 12 franchised and owned IV pharmacies in California.
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