State Agency OKs Changes at Safeguard

Safeguard Health Enterprises Inc.’s pending recapitalization and change of control cleared another regulatory hurdle, the Aliso Viejo company said Monday.

The California Department of Managed Health Care has approved the move just days after the state Department of Insurance gave it the green light.

Safeguard had agreed in March to an $8-million cash infusion from an investor group, which will convert the debt into shares. The company said the transaction is essential to its financial health.

After the conversion, lenders John Hancock Life Insurance Co. and Silicon Valley Bank will hold a 63% stake in the company. Safeguard said.