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Physicians Resource Group, Inc. Announces Developments Regarding 6% Convertible Subordinated Debentures.

DALLAS, Dec. 2 /PRNewswire/ -- Physicians Resource Group, Inc. (NYSE: PRG) (the "Company") today announced that it did not make the interest payment due today related to the Company's outstanding 6% Convertible Subordinated Debentures due 2001, in the principal amount outstanding of $125.0 million. If the interest payment is not made by December 31, 1998, holders of a total of 25% or more of the outstanding principal amount of the convertible subordinated debentures, and the trustee under the indenture related to the convertible subordinated debentures, will have the right to accelerate the maturity of the convertible subordinated debentures. If acceleration occurs but a judgment has not been obtained for payment of amounts due, and the Company is able to make payments necessary to cover overdue interest plus certain related expenses, the holders of a total of 50% or more of the outstanding principal balance of the convertible subordinated debentures may rescind any acceleration.

As previously announced, the New York Stock Exchange has informed the Company that the New York Stock Exchange will make application with the Securities and Exchange Commission to de-list the Company's Common Stock. Upon the occurrence of a de-listing, unless the Company's Common Stock is then approved or listed for trading on another United States national securities exchange or on an established United States over-the-counter trading market, the holders of the Company's convertible subordinated debentures will have the right, within a period of approximately 45 days following the de-listing, to require the Company to repurchase the convertible subordinated debentures at 100% of their principal amount plus accrued but unpaid interest. Failure of the Company to fulfill its repurchase obligation would constitute an event of default under the indenture, which would provide holders of 25% or more of the convertible subordinated debentures and the indenture trustee the right to accelerate the maturity of the convertible subordinated debentures.

PRG is a provider of physician practice management services to eye care practices and operates ambulatory surgery centers.

Certain statements in this news release consist of forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. As such, they involve risks and uncertainties as detailed from time to time in the reports filed by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 1997.
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Publication:PR Newswire
Geographic Code:1USA
Date:Dec 2, 1998
Words:396
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