LifeCare Holdings, Plano, Texas, bought itself more time from its creditors as it weighs various options to deal with its debt load, including a potential sale.
The company obtained loan waivers from its senior secured lenders and a majority of its senior subordinated noteholders after it defaulted on an Aug. 15 interest payment.
The waivers give the long-term acute-care hospital operator until Nov. 1 to find a longer-term solution for its debt woes. LifeCare said in a news release that it will use the additional time to continue talks with "creditors, potential buyers and other interested parties."
]]>LifeCare engaged Rothschild as a financial adviser on May 8 to explore various options to manage its debt, according to an Aug. 14 earnings release.
The company, which had $456.4 million in debt as of June 30, failed to make the $5.5 million interest payment due Aug. 15 on its senior subordinated notes, which constituted an event of default after a 30-day grace period.
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