Diagnostic Health Services scores financing

Imaging services firm Diagnostic Health Services (DHS) this month secured a financing deal with UniCapital of Miami. As the Dallas firm’s primary lender, UniCapital has agreed to provide short-term financing to DHS to help the firm cover debt on which it has defaulted. DHS remains in default of its senior credit agreements.

Also this month, Diagnostic Health Services hired a national consulting firm, Glass & Associates, which helps companies evaluate their restructuring, downsizing, strategic alliance, or sale options. The move comes after an attempt last year to merge with Medical Alliance collapsed after both companies’ boards of directors decided they couldn’t deliver the anticipated value of the proposed deal to shareholders (SCAN 8/18/99). After the merger fell through, DHS focused on ways to improve its balance sheet by restructuring its senior and subordinated debt positions and began to seek options for raising capital. The company’s stock was delisted from NASDAQ National Market on Aug. 11, and now trades on the Over the Counter bulletin board.