MTI restructuring lowers debt

July 27, 1994

Imaging services provider MobileTechnology (MTI) has completed a restructuring effort that sawthe firm upgrade its MRI fleet and convert $80 million worth ofdebt to equity. The company reported this month that its strategyof expanding its stable of fixed

Imaging services provider MobileTechnology (MTI) has completed a restructuring effort that sawthe firm upgrade its MRI fleet and convert $80 million worth ofdebt to equity. The company reported this month that its strategyof expanding its stable of fixed sites is moving forward, withnine fixed sites scheduled to be up and running by the end ofthe summer.

MTI began restructuring last year in response to a heavy debtload and an ailing mobile business (SCAN 1/27/93 and 3/10/93).As part of the restructuring, MTI renegotiated its obligationswith major lenders, resulting in a 75% reduction in the firm'sdebt service. The Los Angeles firm also moved to upgrade its agingMRI fleet. It has acquired 21 new MRI units over the past 18 months,while selling or retiring older units, according to presidentand CEO Joseph Cilurzo.

"The net result is that we have renewed many hospitalcontracts, provided better service to our customers and significantlyupgraded our fleet," Cilurzo said.

In addition, MTI is planning increased emphasis on therapyservices, including lithotripsy and high dose rate brachytherapy.MTI will begin mobile high dose rate brachytherapy service inthe third quarter of this year through a partnership with Nucletron.