PLANO, Texas, Sept. 18, 2012 /PRNewswire/ -- LifeCare Holdings, Inc. (the "Company") has obtained loan waivers from its Senior Secured Lenders and more than a majority of its Senior Subordinated Noteholders. The waivers, which expire on November 1, 2012, provide the Company additional time to continue discussions with its creditors, potential buyers and other interested parties as it pursues longer−term solutions for its debt structure.
The Senior Secured Lenders waived cross-defaults arising from the failure to make the interest payment due August 15, 2012, on its Senior Subordinated Notes. The Company also obtained a waiver from holders of more than 70 percent of its Senior Subordinated Notes due 2013 related to the failure to make the above-referenced interest payment. The terms of the waivers include additional reporting requirements to the lenders and their advisors and certain restrictions on non-ordinary course payments, among other terms.
"We appreciate this action from our creditors as we continue discussions regarding our capital structure and the Company's strategic alternatives," said LifeCare Holdings Chairman and Chief Executive Officer Phillip B. Douglas. "We continue to evaluate various strategic options to restructure our debt and position the Company for future growth."
No assurances can be given that a satisfactory resolution can be reached before the termination of the waivers.
About LifeCare Holdings, Inc.
LifeCare, based in Plano, Texas, currently operates 27 long-term acute care hospitals located in ten states. Long-term acute care hospitals specialize in the treatment of medically complex patients who typically require extended hospitalization. For more information on LifeCare, visit our website at www.lifecare-hospitals.com.
This press release includes forward-looking statements regarding, among other items, operations, proposed regulations and their possible effect on the Company's results. Such statements are subject to a number of uncertainties and risks that could significantly affect current plans. Furthermore, actual results may differ materially from those experienced or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, risks relating to operating in a regulated environment, implementing our business plan, maintaining relationships with physicians in our markets, availability of sufficient nurses and therapists, competition, retaining key management, ability to service our debt requirements, litigation matters and availability of insurance. Further information about factors that could affect the Company's financial and other results is included in our Form 10-K as filed on March 30, 2012, which can be viewed on the SEC's website. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. As a result, you should not place undue reliance on forward-looking statements, which reflect management's views only as the date hereof. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE LifeCare Holdings, Inc.