Prospect Medical Holdings Provides Update on Status of Financial Filings
May 07 2008 - 4:38PM
Business Wire
Prospect Medical Holdings, Inc. (AMEX: PZZ) (�Prospect� or the
�Company�), which manages the medical care of approximately 240,000
HMO enrollees and operates four community hospitals in southern
California, today announced that it has substantially completed the
work necessary to file its Form 10-K for the fiscal year ended
September 30, 2007 and Form 10-Q for the fiscal quarter ended
December 31, 2007. The Company anticipates filing both of these
documents with the SEC by the end of May 2008, once the matters
discussed below pertaining to the Company�s lenders and independent
auditors have been concluded. As previously disclosed, discussions
remain ongoing between the Company and its lenders with respect to
covenant waivers and other amendments to the credit agreements.
Agreed upon amendments to the credit agreements are required prior
to the issuance of the abovementioned Forms 10-K and 10-Q. Although
no assurance can be given, the Company believes that these
amendments will be completed by the middle of May, followed by
final review of the completed credit agreement amendments by
Prospect�s independent auditors and, thereafter, filing of the 10-K
and 10-Q. Assuming completion of the lender and independent auditor
processes described above, Prospect now expects to file its fiscal
2007 Form 10-K and its fiscal 2008 first quarter Form 10-Q by the
end of May 2008, and its fiscal 2008 second quarter Form 10-Q by
mid-June 2008. At that point, Prospect believes it will be
compliant with the continued listing requirements of the AMEX and
will qualify for its common stock to resume trading, as further
discussed below. The Company and its lenders have agreed to revised
forbearance agreements that extend the forbearance period through
May 14, 2008. There was no additional cost to Prospect in
connection with these latest extensions. If the credit agreement
amendments have been satisfactorily completed by this date, no
additional forbearance agreement extension will be necessary. If
not, the Company expects that it and its lenders will negotiate
another extension, or the Company will be in default under its
existing credit agreements. Request for Extension of AMEX
Compliance Plan Period As previously announced, Prospect submitted
a letter to the AMEX on February 28, 2008 setting forth the
Company�s Plan for regaining compliance with the exchange�s
continued listing requirements, including filing the Alta
Healthcare System, Inc. 8-K/A, which was filed on April 1, 2008,
and filing Prospect�s fiscal 2007 Form 10-K and fiscal 2008 first
quarter Form 10-Q not later than April 28, 2008. In connection with
the Company�s revised time table discussed above, Prospect
submitted a letter to the AMEX dated May 2, 2008, requesting that
the AMEX extend until June 16, 2008 the deadline for Prospect to
complete its late SEC filings and thereby regain compliance with
the exchange�s continued listing requirements. The AMEX is
currently evaluating the Company�s Plan. Assuming acceptance of the
Plan by the AMEX, and Prospect�s timely filing of all indicated SEC
filings, the AMEX will consider restoring trading in Prospect�s
common stock. ABOUT THE COMPANY Prospect Medical Holdings�operates
four community-based hospitals in the greater Los Angeles area and
manages the medical care of individuals enrolled in HMO plans in
Southern California, through a network of over 9,000 specialist and
primary care physicians. This press release contains
forward-looking statements. Additional written or oral
forward-looking statements may be made by Prospect from time to
time, in filings with the Securities and Exchange Commission, or
otherwise. Statements contained herein that are not historical
facts are forward-looking statements. Investors are cautioned that
forward-looking statements, including statements regarding
anticipated or expected results involve risks and uncertainties
which may affect the Company's business and prospects, including
those outlined in Prospect's Form 10-K filed on December 28, 2006,
its Form 10-Q filed on August 20, 2007, as well as risks and
uncertainties arising from Prospect's acquisitions of Alta and
ProMed, the debt incurred by Prospect in connection with those
acquisitions, the resolution of current negotiations regarding
covenant waivers and credit agreement amendments, and the ability
of the Company to regain compliance with the AMEX�s continued
listing requirements. Any forward-looking statements contained in
this press release represent our estimates only as of the date
hereof, or as of such earlier dates as are indicated, and should
not be relied upon as representing our estimates as of any
subsequent date. While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim
any obligation to do so, even if our estimates change.
Prospect Medical (AMEX:PZZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Prospect Medical (AMEX:PZZ)
Historical Stock Chart
From Jul 2023 to Jul 2024