Comprehensive Care Concludes Exchange
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CORONA DEL MAR — Comprehensive Care Corp. said it finally has wrapped up a long-delayed exchange of cash and stock for millions of dollars worth of bonds on which it had defaulted.
The loss-ridden health-care management company said that investors with about 72% of the $9.5 million worth of its convertible debentures in default since October 1994 tendered their holdings.
Investors received $580 in cash and 24 shares of the company’s common stock for each $1,000 bond.
The company said the exchange will reduce its total debt by 59% and result in a $2.5-million gain during its third quarter ending next month.
James Wong, a company executive, noted that the company is satisfied with the level of investor support for the offer. He refused to say whether the elimination of debt would substantially improve the company’s financial health.
In recent years, statements by the company’s public accountants have questioned whether Comprehensive Care can continue as a going concern.
Investors, however, seemed to like the news and the company’s stock closed Thursday at $12.625 a share, up 50 cents in moderate New York Stock Exchange trading.
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