GERIATRIC & MEDICAL CENTERS REACHES AGREEMENT ON RECEIVABLES FINANCING FOR UP TO $25 MILLION
GERIATRIC & MEDICAL CENTERS REACHES AGREEMENT
ON RECEIVABLES FINANCING FOR UP TO $25 MILLION
PHILADELPHIA, Dec. 10 /PRNewswire/ -- Geriatric & Medical Centers, Inc. (NASDAQ: GEMC), today reported an agreement with Lightship Financial Group to finance up to $25 million of receivables generated by its health care companies.
Daniel Veloric, chairman of the board and president, said, "This financing is another important strategic step toward providing additional capital for our expanding health care service companies. In September, we negotiated a two-year loan agreement with our bank group to amortize their debt balance of $73.5 million over a two-year period. This new financing agreement enables the company, for the first time, to recognize receivables as an important source of collateral to support the raising of working capital, and will facilitate a payment of approximately $14 million due to the bank group by Dec. 31, 1991."
Veloric added, "The focus on health care in this country will provide opportunities for continued growth. The company previously reported that our first quarter ended Aug. 31 was the most profitable in several years, and as operations improve, our bottom line should show further improvement."
Geriatric & Medical Centers, Inc., and its Pharmaceutical, Home Care Services and Long-Term Care Management and Development Group is a leading provider of health care products and services to hospitals, HMOs, physician groups and long-term care facilities in the Mid-Atlantic region.
/CONTACT: Robert F. Carfagno, senior vice president-finance and chief financial officer of Geriatric & Medical Centers, 215-748-8868; or Stan Froelich of Cameron Associates, 212-683-4545, for Geriatric & Medical Centers/
(GEMC) CO: Geriatric & Medical Centers, Inc. ST: Pennsylvania IN: HEA SU: FNC FC-GK -- NY016 -- 0906 12/10/91 10:04 EST