American HomePatient Continues Negotiations With Lenders and Does Not Make Scheduled Principal Payment.Business Editors, Health & Medical Writers BRENTWOOD Brentwood, city and district, England Brentwood, city (1991 pop. 51,212) and district, Essex, SE England. Brentwood is mainly residential but produces some agricultural equipment, film, and prefabricated concrete. , Tenn.--(BUSINESS WIRE)--March 16, 2001 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of HomePatient, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AHOM) announced today that it did not make a scheduled $3,000,000 principal payment due March 15, 2001 under the terms of its existing credit facility. Failure to make the payment is a default under the credit facility. The Company is currently negotiating with its lenders to amend the credit facility to cure the nonpayment default and defaults related to noncompliance noncompliance failure of the owner to follow instructions, particularly in administering medication as prescribed; a cause of a less than expected response to treatment. noncompliance with existing financial covenants. The Company also is negotiating with its lenders to modify the existing scheduled principal payments along with other terms and covenants. Since the negotiations include discussions regarding modifications of future principal payments, the Company chose not to make the March 15, 2001 payment under the existing credit facility. As a result of the default, the lenders under the credit facility have the ability to demand payment of all outstanding amounts and to exercise other remedies under the credit facility. The Company is current in its payments of interest under the credit facility. Certain statements made in the press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. Such factors may include the acceleration of all indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. under the Company's credit facility, the foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. of all of the Company's assets by the lenders under the Company's credit facility, the increased cost of borrowing under the Company's credit agreement, changes to the Company's business strategy and operation, the effect of healthcare legislation and regulation, the ability to obtain business, and the outcome of ongoing governmental investigations. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative of the future performance. |
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