Integrated Healthcare affiliate reaches loan agreement
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.