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November 11, 2003 at 07:00 PM
NU Online News Service, Nov. 11, 2003, 12:49 p.m. EST – PlanVista Corp., Tampa, Fla., generated a profit during the third quarter, but Phillip Dingle, the company’s chairman, says PlanVista still needs to find financing to keep preferred shareholders from gaining control of 51% of the outstanding common shares in May 2004.
PlanVista, a company that sells network management services and other support services to managed care companies, is reporting $1.5 million in net income on $8 million in revenue for the latest quarter, compared with $1.9 million in net income on $8.3 million in revenue for the third quarter of 2002.
Net cash provided by operating activities increased to $3.8 million, from $705,000.
But PlanVista ended up refinancing debt in March 2002, at a time when credit was scarce. About $38.5 million in debt will mature in May 2004, and $20.5 million of that debt is helped by an affiliate of Commonwealth Associates L.P., New York, PlanVista says.
The lenders, which hold preferred stock, have the right to convert the shares into so much common stock that they would end up owning 51% of PlanVista’s common shares.
