AHP Working on Debt Repayment — for Fifth Time

BRENTWOOD, Tenn. — American
HomePatient announced this week that it has entered into a
fifth forbearance agreement with NexBank, SSB, the agent for its
senior debt, and other creditors.

The giant provider had been due to repay approximately $226
million on Aug. 1 under terms of a secured promissory note, but in
a series of agreements, the debt-holders have agreed not to take
any action on the company’s failure to repay. The latest agreement
notes “the parties to the forbearance agreement have agreed to not
exercise, prior to Dec. 16, 2009, any of their rights or remedies
for the company’s failure to repay the debt in full on the maturity
date.”

According to a release, “the company, the agent, and the
forbearance holders continue to work toward a resolution of the
debt maturity issue.  However, there can be no assurance a
resolution will be reached with favorable terms to the company and
its stockholders or at all.”

AHP’s 2009 third-quarter revenues were $59 million compared to
$65.6 million for the third quarter of 2008, a decrease of $6.6
million, or 10.1 percent. Revenues for the nine months ended Sept.
30 were $175 million compared to $199 million for the same period
in 2008, a decrease of $24 million, or 12.1 percent.

Founded in 1983, the provider has operations in 33 states.