AHP catches second break

Monday, August 31, 2009

BRENTWOOD, Tenn. – American HomePatient (AHP) has announced that it has entered into a second forbearance agreement with NexBank and a majority of secured debt holders for $226.4 million in debt that was due to be repaid Sept. 1.

The new due date: Oct. 1.

“The parties to the second forbearance have agreed to not exercise, prior to Oct. 1, 2009, any of their rights or remedies for the company’s failure to repay the debt in full on the maturity date,” according to a release. “The company, the agent and the forbearance holders are currently in discussions to resolve the debt maturity issue. There can be no assurance that these discussions will result in a resolution with favorable terms to the company and its stockholders or at all.”

The debt was originally due to be repaid Aug. 1.

In August, AHP reported $57.7 million in revenues for the second quarter of 2009 compared to $64.2 million for the same period last year, a 10.1% drop. Net losses were $4 million this year vs. $2.1 million last year.