Imaging services firm HealthCare Integrated Services is struggling to cope with a liquidity crunch. The Ocean Township, NJ, firm said it will be forced to scrap a previously announced acquisition, and will sell its interest in a New Jersey radiology network in order to raise cash.
HCIS said that its financial condition has made it impossible for the company’s auditors to complete its 2001 financial statements. As a result, trading in the firm’s stock has been suspended from the American Stock Exchange. In addition, HCIS said that its auditors will probably issue a statement regarding the company’s ability to continue as a going concern.
In order to raise working capital, HCIS is in negotiations to sell its 50% interest in Atlantic Imaging Group, which manages 85 facilities in New Jersey. The firm said it probably won’t be able to consummate its purchase of another joint venture it is involved in, and instead will probably seek to sell its 50% stake in that company, healthcare kiosk developer Helios Ventures.
Completing one or both of these transactions should give HCIS sufficient cash to satisfy debt obligations and finalize its financial statements, enabling it to return to trading on Amex. HCIS is also negotiating with its primary lender regarding debt restructuring.
By AuntMinnie.com staff writersJune 25, 2002
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