SafeGuard Health Finishes Restructuring

SafeGuard Health Enterprises Inc. said Thursday it has completed a financial restructuring that gives John Hancock Life Insurance Co. effective control of the Aliso Viejo provider of dental and vision care plans.

As part of the arrangement, SafeGuard wiped out $53 million in debt, freeing the company to pursue acquisitions and other business opportunities. Safeguard said in a press release that it converted the debt and accrued interest into preferred stock that carries no dividend but can later be converted into common stock.

As a result of the transaction, John Hancock gains control of 40% of Safeguard’s stock and has put one of its executives, Stephen J. Blewitt, on SafeGuard’s board. Management’s stake in the company shrinks from 42% to 9%, including stock options.

SafeGuard stock gained 25 cents Thursday to close at $1.50 a share in over-the-counter trading.