Court Confirms InterDent's Plan of Reorganization; Pre-arranged Plan Completed in Just 117 Days.Business Editors/Health/Medical Writers EL SEGUNDO, Calif.--(BUSINESS WIRE)--Sept. 10, 2003 InterDent, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : DENT) today announced that the Federal Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Santa Ana, California Santa Ana is the most populous city in Orange County, California and is the county seat. It lies approximately 10 miles inland from the Pacific Ocean, on the largely seasonal Santa Ana River. , has confirmed the Company's Plan of Reorganization. InderDent had filed a Prearranged pre·ar·range tr.v. pre·ar·ranged, pre·ar·rang·ing, pre·ar·rang·es To arrange in advance. pre Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code on May 9, 2003. With completion of this reorganization, InterDent will now exit Chapter 11 and become a private company. The restructuring reduces the Company's total debt by approximately $130 million, resulting from $90 million of debt being converted to equity and $39 million of convertible subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". being extinguished. The remaining $38 million of senior debt is restructured into a three-year, market-rate term loan, leaving the Company with a debt to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ratio of approximately 2.0, which is very manageable. Additionally, the new equity holders are providing a $7.5 million revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . H. Wayne Posey, chairman and chief executive officer of InterDent, said, "As evidence of the support that our Plan of Reorganization received, every class of creditors ended up voting to confirm the Plan. All of us at InterDent are very excited that the Company is now on solid footing with a stable capital structure. We now will be able to focus totally on our business and fulfill the promise of InterDent as a well-financed national leader in the dental industry." In closing, Mr. Posey said, "We are pleased with our progress, but hardly satisfied. The current economic environment is a continuing challenge, but I am confident we are up to the task. We've come this far because of the unwavering loyalty and support of our employees and affiliated dentists and their positive attitudes demonstrated time and again, especially during these past four months." About InterDent InterDent provides dental management services in 135 locations in California, Oregon, Washington, Nevada, Arizona, Hawaii, Idaho, Oklahoma and Kansas with total annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. patient revenues under management of approximately $250 million. The Company's integrated support environment and proprietary information technologies enable dental professionals to provide patients with high quality, comprehensive, convenient and cost-effective care. This press release contains forward-looking statements that are made pursuant to the safe harbor provisions 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. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, depending upon the ultimate outcome of the reorganization proceedings. The forward-looking statements should be considered in light of these risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's outlook as of today, and the Company undertakes no obligation to update these forward-looking statements. |
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