In­te­grated Health­care af­fil­i­ate reaches loan agree­ment

Modern Healthcare - - Late News -

In­te­grated Health­care Hold­ings, Santa Ana, Calif., said an af­fil­i­ate of its largest share­holder has reached an agree­ment with a court-ap­pointed re­ceiver to pur­chase loans made to In­te­grated by Med­i­cal Cap­i­tal Corp., Tustin, Calif. MCC and an­other re­lated or­ga­ni­za­tion were charged in a fraud com­plaint by the Se­cu­ri­ties and Ex­change Com­mis­sion last sum­mer, and a fed­eral judge was ap­pointed as the re­ceiver for their par­ent com­pany, Med­i­cal Cap­i­tal Hold­ings, in Au­gust 2009. Kali Chaud­huri is a physi­cian who has been a fi­nan­cial backer and in­vestor in In­te­grated Health­care since the com­pany agreed in 2005 to buy four Cal­i­for­nia hos­pi­tals from Tenet Health­care Corp., Dal­las. Chaud­huri’s in­volve­ment with In­te­grated ini­tially sparked up­roar be­cause he had been chair­man of a physi­cian prac­tice­m­an­age­ment com­pany that shut­tered clin­ics across Cal­i­for­nia in 2000. Un­der the pro­posal, a com­pany con­trolled by Chaud­huri would pur­chase loans un­der which In­te­grated owes $81 mil­lion and pro­vide other con­sid­er­a­tions, ac­cord­ing to a se­cu­ri­ties fil­ing. In re­turn, be­sides pay­ing off the loans, In­te­grated would is­sue a five-year war­rant to Chaud­huri to pur­chase up to 170 mil­lion shares at 5 cents each, the fil­ing stated. Other in­vestors have about three months to bid on the loans, and any fi­nal agree­ment must be ap­proved by the re­ceiver, ac­cord­ing to In­te­grated.

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