Medical Resources completes debt accord

Imaging services provider Medical Resources of Hackensack, NJ, has completed an agreement with a group of corporate bond holders that restructures the terms of senior notes held by the investors. Medical Resources had fallen into technical default on the notes because of covenants that required it to maintain a certain level of net income (SCAN 9/2/98).

Under the restructured deal, the bond holders agreed to waive the company’s defaults and modify the terms of the notes to relax the net income provisions. Medical Resources has agreed to prepay $2 million in principal out of a total of $78 million, issue stock purchase warrants to the note holders, and pay a higher interest rate on the notes.