Westworld Extends Offer to Exchange Debt Notes

Westworld Community Healthcare Inc., the troubled Lake Forest hospital operator, said Monday that it is extending its offer to exchange $65 million worth of debt notes for new debt securities in the company until July 15.

The extension, one of several in the last few months, was necessary because fewer than 50% of the note holders have agreed so far to accept the terms of the deal. A company spokesman said the larger note holders object to the terms of the offer and had wanted the company to modify its offer. Under terms of the new notes to be issued by the company, interest payments could be made in Westworld common stock, rather than cash.

However, the company repeated its contention Monday that if it cannot amend its exchange offer, it will consider a variety of alternatives to solve its financial problems, including seeking protection under the Chapter 11 Federal Bankruptcy Code.