Wellington Management erroneously reported a 7.12% ownership stake in Community Health Systems in a U.S. Securities and Exchange Commission filing last month, a mistake the mutual fund corrected with a new filing issued Thursday.
Modern Healthcare incorrectly reported Thursday that Wellington had sold the entirety of its stake in CHS, when it did not own any common shares in the hospital chain.
The Boston-based fund has not reported an ownership stake in the Franklin, Tenn.-based chain since the end of 2016, when it owned nearly 5 million shares. That amount dropped to zero in an early 2017 filing.
Wellington's Feb. 8. filing misidentified its nearly 19 million Contingent Value Rights as common shares. The CVRs Wellington owns are a holdover from CHS' 2014 purchase of Health Management Associates and is related to unresolved legal issues, according to a Nasdaq memo.
CHS has hired a team of financial advisers to help the chain restructure $4.8 billion in long-term debt maturing in 2019 and 2020. The chain's stock price dropped 11% over a two-day period after reports of the hire surfaced. CHS' total long-term debt stands at nearly $14 billion.
CHS' stock dropped 17% on the day of its Feb. 28 earnings call, in which executives discussed the company's disappointing fourth-quarter and full-year 2017 results, including a roughly $2.4 billion net loss over the year and a 32% decline in revenue in the fourth quarter.
In January, CHS' largest shareholder, Chinese billionaire Tianqiao Chen, increased his stake to 24% through his Singapore-based Shanda Group affiliates
