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.
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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.