NU Online News Service, Dec. 13, 3:06 p.m. – PlanVista Corp., Tampa, Fla., says its lenders have given it until Jan. 31, 2002, to refinance or restructure its $115 million credit facility.
The original term for the facility expired Aug. 31. The lenders extended the term till Dec. 15. The lenders are now extending the term a second time while negotiations for restructuring the facility continue, Plan Vista says.
PlanVista rents preferred provider networks to retail managed care carriers.
First Union Corp., Charlotte, N.C., led a group of 10 large banks that provided the credit facility, which consists of a combination of ordinary loans and a line of revolving credit. PlanVista used the cash to pay for acquisitions and finance its own internal growth.
PlanVista reported in financial statements filed with securities regulators earlier this year that it owed $65 million on the credit facility.
PlanVista still has too much debt on its balance sheet, relative to its size, but operations are doing well this year, and should do even better in 2002, the company says.