OKLAHOMA CITY, Aug. 24, 2016 /PRNewswire/ -- Foundation HealthCare, Inc. (OTCQB: FDNH), which is an owner and operator of surgical hospitals, announced today the Company has reached an agreement with its Senior Lenders, led by Texas Capital Bank, its lead lender, to waive the certain financial covenant defaults and to restructure the finanancial covenants on its credit facility for the remainder of 2016.
"As a result of this agreement, when the Company files its 10Q for the quarter ending June 30, 2016, the debt will be reclassified between current and long term based on the original loan agreement," stated Hugh King, Foundation CFO.
"We appreciate our relationship with Texas Capital Bank and our other lending partners," said Stanton Nelson, Foundation CEO. "We remain confident in our business model and we have taken positive actions to strengthen our operating and financial performance. Historically, Foundation posts its strongest financial results in the third and fourth quarters. We believe that trend will continue in 2016," added Nelson.
Under the terms of the new agreement with Texas Commerce Bank, interest will accrue at 6.5% and Foundation will pay a fee of $209,000.
About Foundation HealthCare – Headquartered in Oklahoma City, Foundation HealthCare owns and/or operates three surgical hospitals and nine surgery centers in six states. Physicians who operate in our facilities currently provide general surgeries and surgeries in such specialties as orthopedics, neurosurgery, pain management, podiatry, gynecology, optometry, gastroenterology and pediatric ENT (tubes/adenoids).
Foundation HealthCare's management seeks to operate each facility efficiently and effectively such that patients receive high quality, cost effective care. The Foundation team seeks to improve the performance of each hospital by recruiting physicians to operate in its facilities and incorporating additional ancillary services in their markets. These additional service lines, such as toxicology, wound care, sleep management, radiology and imaging, truly make the Foundation specialty hospital environment unique.
The Company is also an industry leading ASC management and development company focused on partnering with physicians and employees to create an outstanding patient experience, while maximizing partner and shareholder value.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on the Company's current expectations, forecasts and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the risk that Company will maintain enough liquidity to execute its business plan, continue as a going concern and other risks including those enumerated and described in the Company's filings with the Securities and Exchange Commission, which filings are available on the SEC's website at www.sec.gov. Unless otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Company Contact:
Foundation HealthCare, Inc.
Stanton Nelson, CEO
Primary contact: Brooks O'Neil, 952-239-7677 (email@example.com)
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SOURCE Foundation HealthCare