Required space renovations and base building improvements are critical factors in the negotiation, since the level of required capital investment is central to calculating the restructured
The Company hopes to reach agreement with, and resume making payments on a restructured
basis, to these creditors and lessors by the end of April, or as soon as possible thereafter.
In addition, simultaneously with this acquisition and lease restructuring, Alterra restructured
its existing lease portfolio with NHP, converting individual residence leases into a second new master lease.
Under the agreement in principle with its bank lenders, Leiner's existing senior indebtedness will be restructured
and remain outstanding.
A reduced and restructured
debt load, a lessened current interest burden, combined with access to a new revolving credit facility will enable Leiner Health Products to operate from a stronger financial position.
Under the agreement, the noteholders will exchange their $165 million of old notes for $10 million in cash, $100 million of new five year notes with PIK interest of 8% per annum and 15% of the equity in the restructured
Based on its current estimates, USD anticipates that, absent completion of additional center sales or the availability of additional short term liquidity, its current cash and cash generated from operations will be sufficient to meet its anticipated cash needs (other than amounts required to repurchase Debentures as described above) to approximately June 2001; however, if its principal repayments can be appropriately restructured
, USD believes that its cash flow will be sufficient to permit it to complete the sale of the remaining centers over time, although there can be no assurance in this regard.