Bond Swap Is Extended Again by Westworld Inc.

For the second time since its exchange offer began last month, Westworld Community Healthcare Inc. said Thursday that it will extend the deadline for holders of $65 million in junk bond debt to trade their old debt for new debentures.

The troubled Lake Forest-based hospital company said that bondholders now have until April 8 to swap $35 million in 14.375% subordinated debentures and $30 million in 14.5% subordinated notes for new, low-interest debentures whose interest payments may be made in common stock.

Since the exchange offer became effective on Feb. 14, approximately $7.4 million in debt has been tendered, Westworld said. The company previously had set today as the deadline for the swap after extending it from the original closing date of March 17.

Since the beginning of December, the company has been in default on a $2.5-million interest payment due on its $35 million in debentures. A $2.2-million interest payment on the $30 million in notes becomes due next Wednesday.

Westworld, which this week reported a $124.6-million loss for 1986, has said that the bond swap is a “key component” in its bid for survival. If the offer cannot be successfully executed, company officials say Westworld may file for bankruptcy.