Alliance Imaging Finishes Financial Restructuring

Alliance Imaging Inc. completed its financial restructuring by issuing preferred stock that wipes out most of its $21.4-million debt, giving it more flexibility to finance future acquisitions.

The creditor, a General Electric Co. subsidiary, picked up a 21% stake in Alliance Imaging by converting an $18-million bridge loan into the preferred stock, which is convertible to common stock at $6 a share.

Alliance said the debt conversion helped it cut its long-term debt as a percentage of total investment to about 51% from 67% since last September.

Richard N. Zehner, its chairman and chief executive, said the company now can finance its plans more easily to buy other companies that produce medical imaging services across the country. Alliance operates in 36 states.