Comprehensive Care, Bondholder Committee Reach Pact

Comprehensive Care Corp., hit with an involuntary bankruptcy petition filed by dissident investors, said Monday that it has reached an agreement with a bondholder committee that will allow it to dismiss the bankruptcy petition today.

News of the agreement boosted the company’s stock price 11%, or 62.5 cents a share, to close Monday at $6.375 a share on the New York Stock Exchange.

The agreement with the committee, which represents 75% of those who hold short-term bonds known as debentures, calls for the Newport Beach health services organization to repay its bond debts under a plan that will give holders 50 cents on the dollar in cash, 12 cents on the dollar in common stock and an agreed amount of interest within the next six months.

As part of the agreement in principle, dissident bondholders will not oppose the dismissal of the bankruptcy petition.