Imaging services chain U.S. Diagnostic of West Palm Beach, FL, announced today that its board of directors has approved a restructuring plan that could include the sale of all of its imaging centers. The company said it is making the move because its high level of debt makes future growth difficult.
U.S. Diagnostic emerged from obscurity through an aggressive acquisition campaign in the mid-1990s to become the largest imaging services chain. It currently owns, operates, or manages 79 centers. The company ran into problems beginning in late 1996 related to its rapid growth, however, and USDL has spent much of the last several years restructuring.
USDL president and CEO Joseph Paul said that while the company's debt and expense reduction program has produced results, the company remains highly leveraged. In addition, the weak condition of public markets for debt and equity of healthcare services companies, and the company's need for liquidity, has made an asset sale the best course of action, he said.
Under the plan, USDL will either reinvest the proceeds of a sale into a new business, or will liquidate the company through a distribution to shareholders. The restructuring plan will require shareholder approval, which is expected to occur at the company's annual meeting in July.
By AuntMinnie.com staff writers
May 10, 2000
