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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): May 25, 2001
Commission file number 001-12055
PARACELSUS HEALTHCARE CORPORATION
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-3565943
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
515 W. Greens Road, Suite 500, Houston, Texas
(Address of principal executive offices)
77067 (281) 774-5100
(Zip Code) (Registrant's telephone number,
including area code)
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ITEM 5. OTHER EVENTS
Paracelsus Healthcare Corporation announced today that it has received oral
confirmation from the United States Bankruptcy Court in Houston, Texas of its
Chapter 11 Amended Plan of Reorganization and approval of the terms of its
previously announced $5.5 million settlement of government claims. The plan of
reorganization will become effective after entry of the final order by the
court, expiration of the normal 10 day appeal period, and satisfaction of
various conditions precedent to effectiveness contained in the Plan, ("Effective
Date"), which the Company expects to occur in the next few weeks.
The confirmed reorganization plan provides, among other things, that all
principal and interest outstanding on the 10% Senior Subordinated Notes and all
allowed general unsecured claims will be exchanged for a combination of cash,
new debt and new common stock of reorganized Paracelsus, which will
reincorporate in Delaware and change its corporate name to Clarent Hospital
Corporation. Upon the Effective Date of the Amended Plan, the shares of the
Company's common stock held by existing equity holders will be canceled and
rendered null and void. The former equity holders will neither receive nor
retain any interest in the Company under the approved plan. The 6.51%
Subordinated Note and interest outstanding will be deemed to be exchanged for
existing equity, which will be concurrently eliminated under the Amended Plan.
The complete Amended Plan of Reorganization is on file with the United States
Bankruptcy Court.
The Company has retained an investment banking firm to review its strategic
alternatives following emergence from Chapter 11 bankruptcy protection. The
investment banking firm is in the preliminary stage of its work, and the Company
cannot predict the timing or ultimate outcome of this initiative.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99.2 Press Release dated May 31, 2001 issued by the
Paracelsus Healthcare Corporation.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Paracelsus Healthcare Corporation
(Registrant)
Dated: June 1, 2001 By: /s/ Lawrence A. Humphrey
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Lawrence A. Humphrey
Executive Vice President,
& Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.2 Press Release dated May 31, 2001 issued by the
Paracelsus Healthcare Corporation.