Defaulted Bonds Might Finally Pay Off
Holders of Comprehensive Care Corp. bonds in default have been waiting for more than a year for the financially shaky Costa Mesa health care company to pay them off.
Noting their patience, Drew Q. Miller, the company’s chief operating officer, says it now aims to sweeten the deal for investors. “It’s unfair to ask the investors to take the original deal,” Miller said. “It’s just been too long.”
The company promised to pay off $9.5 million of bonds in default early last year to satisfy creditors, who then dropped their petition to put the company in bankruptcy. Five months ago, it filed a plan with the Securities and Exchange Commission to give the holder of every $1,000 bond in default $580 in cash and 12 shares in stock. But the agency hasn’t approved the plan.
Miller says the company now wants to amend the plan to give investors more stock in the exchange, but he says the SEC won’t let the company file an amendment until it answers remaining questions on a prior filing. An SEC spokesman said the agency wouldn’t comment.
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Barbara Marsh covers health care for The Times. She can be reached at (714) 966-7762 and at barbara.marsh@latimes.com
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