Brentwood, Tenn.
The U.S. Supreme Court has declined to hear an appeal by American HomePatient's senior debt holders, ending the group's efforts to overturn the company's bankruptcy reorganization plan, approved in 2003.
The provider, which operates 263 centers in 34 states, filed for Chapter 11 in 2002 and fought with creditors over its reorganization plan, which rejected the warrants issued to the debt holders before the bankruptcy, the Nashville Business Journal reported. The warrants, which represented about 20 percent of AHP's outstanding common stock, would have allowed the lenders to buy about 3.2 million shares of the company's common stock for 1 cent per share.
On July 1, 2003, the company emerged from its 11-month reorganization with a plan giving it until 2009 to pay $250 million in debt.
AHP posted revenues of $328.4 million in 2005, down $7.4 million from the previous year.
Earlier this year, the company, which has struggled with declining Medicare reimbursement rates, considered a buyout bid from Highland Capital Management.
