TORONTO, July 17, 2017 /CNW/ - Syncordia
Technologies and Healthcare Solutions, Corp. (TSXV: SYN)
("Syncordia") has announced today that it has entered into a
forbearance agreement (the "Forbearance Agreement") with the
holders of the secured notes issued by Syncordia in the aggregate
principal amount of US$13,332,388.43
pursuant to a note purchase agreement dated November 5, 2014, as amended on April 23, 2015, between Syncordia and Deans
Knight Capital Management Ltd, in its capacity as portfolio manager
on behalf of the investors and co-investors. The notes are
guaranteed by Syncordia's subsidiaries who have also granted
security .
As previously announced, Syncordia has commenced a process to
divest of its interest in Billings Solutions LLC ("Billing
Solutions") and Paragon Billing LLC ("Paragon").
Under the terms of the Forbearance Agreement, the noteholders
have agreed to forbear from exercising their enforcement rights and
remedies in respect of the secured notes to enable Syncordia to
continue its ongoing divestiture process of its interest in
Billings Solutions for a period of approximately of three and a
half months, subject to the terms of the Forbearance Agreement.
Under the terms of the Forbearance Agreement, Syncordia will also
continue its process to divest of Paragon. Syncordia has agreed to
engage an advisor to conduct the divestiture process and proceeds
received by Syncordia from any divestiture will be used to
forthwith pay down indebtedness owing to the noteholders.
The Forbearance Agreement provides for an escrow account of
US$283,000 that Syncordia can
access to pay for certain agreed upon payments pursuant to the
terms of an escrow agreement
Syncordia intends to continue to operate its business in the
ordinary course while pursuing the divestitures.
For further details, please see the Forbearance Agreement that
will be filed under Syncordia's profile on SEDAR at
www.sedar.com.
About Syncordia Technologies and Healthcare Solutions,
Corp.
We are a technology enhanced revenue cycle management company
focused on underserved niche segments of the healthcare
industry.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking Statements
Certain statements herein may be "forward looking" statements
that involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of Syncordia or the industry to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Forward
looking statements involve significant risks and uncertainties,
should not be read as guarantees of future performance or results,
and will not necessarily be accurate indications of whether or not
such results will be achieved. A number of factors could cause
actual results to vary significantly from the results discussed in
the forward looking statements. These forward-looking statements
reflect the current expectations or beliefs of Syncordia based on
information currently available to Syncordia. Forward-looking
statements are subject to a number of risks and uncertainties that
may cause the actual results of Syncordia to differ materially from
those discussed in the forward-looking statements, and even if such
actual results are realized or substantially realized, there can be
no assurance that they will have the expected consequences to, or
effects on, Syncordia. Factors that could cause actual results or
events to differ materially from current expectations include,
among other things: failure to satisfy any terms or conditions of
the Forbearance Agreement, which may lead to enforcement or
insolvency proceedings by the noteholders; failure to dispose of
our interest in Billing Solutions and/or Paragon to satisfy our
obligations to our noteholders; and any negative impact on
Syncordia's current operations as a result of the Forbearance
Agreement, including any divestiture. We assume no obligation,
except as required by law, to update any forward looking statements
to reflect new events or circumstances.
This press release provides summary information only in respect
of the Forbearance Agreement. Readers are urged to consult the full
text of the Forbearance Agreement for further information, a copy
of which will be filed under the Corporation's profile on SEDAR at
www.sedar.com.
SOURCE Syncordia Technologies and Healthcare Solutions,
Corp.