The properties were acquired late last week from T and F Properties LP. The buyer is ALC's wholly-owned subsidiary Texas ALC Partners LP. The acquisition was made pursuant to options granted to ALC by T and F on Sept. 25, 2001. The so-called Meditrust Acquisition is financed by an existing debt facility of certain subsidiaries of ALC with Heller Healthcare Finance, Inc., which was amended on October 3, 2001 to include the financing of the Meditrust Acquisition.
On October 3, 2001, the Court issued an Interim Order approving debtor-in-possession financing with Heller in the principal amount of $4.4 million, on which the Company drew the initial amount of $1.0 million on October 4, 2001. On October 19, 2001, the Court issued its Final Order of the DIP Facility and also approved the Company's guaranty of the Meditrust Acquisition, among other things.
In connection with the Meditrust Acquisition, Texas ALC has become a borrower under the Heller Loan Agreement pursuant to a joinder thereof and the Meditrust Properties serve as collateral for repayment of the Heller Loan Agreement and the DIP Facility.
On Oct. 25, ALC was notified that the Securities and Exchange Commission granted the application filed by AMEX to strike ALC's common stock and its two series of convertible subordinated debentures from listing and registration effective Oct. 26, 2001. It is not yet known when or if the company's stock will be traded on the OTC Bulletin Board.
ALC filed for bankruptcy on Oct. 1. The bankruptcy, if it is accepted by the court, will award debenture holders 96% of ALC's common stock. Existing stockholders exchange their stock for the remainder, thus relieving ALC of a portion of its debt, which totals $231 million, including $161.3 million in convertible subordinated debentures.
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