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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 10, 1997
NORTHSTAR HEALTH SERVICES, INC.
(Exact name of registrant as specified in charter)
DELAWARE 0-21752 25-1697152
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
665 PHILADELPHIA STREET, INDIANA, PENNSYLVANIA 15701
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (412) 349-7500
Not Applicable
(Former name or former address, if changed from last report)
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ITEM 5. OTHER EVENTS.
Cerberus Partners, L.P. has purchased from IBJ Schroder Bank & Trust
Company all of the Company's senior debt amounting to $15.3 million. The debt
was purchased subject to an existing forbearance agreement that extends through
the end of September 1997.
Cerberus Partners, L.P. is a broadly diversified financial securities firm
that invests in publicly traded and private debt issues of both large and
middle market companies. Cerberus also provides financing for companies seeking
capital for mergers, acquisitions and working capital. The Company has entered
into discussions with Cerberus Partners, L.P., a New York based investment
firm, to commence negotiations to establish a permanent restructuring of the
company's senior debt that would cure all existing defaults and contemplate a
viable repayment schedule.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of businesses being acquired: None.
(b) Pro Forma financial information: None.
(c) Exhibits:
99.1 Press release, dated September 10, 1997, issued by
the Company regarding the purchase of senior debt by
Cerberus Partners, L.P.
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SIGNATURES
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 hereunto duly authorized.
Northstar Health Services, Inc.
/s/ Thomas W. Zaucha
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Name: Thomas W. Zaucha
Title: Chief Executive Officer and President
September 15, 1997
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EXHIBIT INDEX
Exhibit Page
- ------- ----
99.1 Press release, dated September 10, 1997, issued by the Company
regarding the purchase of senior debt by Cerberus Partners, L.P.....5
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Exhibit 99.1
Contact: Thomas W. Zaucha, CEO
Northstar Health Services, Inc.
(412) 465-3200
Tracey L. Missien, Director of Marketing
Northstar Health
Services, Inc.
(412) 465-3710
FOR IMMEDIATE RELEASE
NORTHSTAR'S $15.3M SENIOR DEBT PURCHASED BY CERBERUS PARTNERS, L.P.
INDIANA, PA - SEPTEMBER 10, 1997-Northstar Health Services,Inc.(NSTR:OTCBB)
announced today that Cerberus Partners, L.P., a New York based investment firm
has purchased from IBJ Schroder Bank & Trust Company, its senior debt amounting
to $15.3 million. The company's debt was purchased subject to an existing
forbearance agreement that extends through the end of September 1997.
Founded in 1992, Cerberus Partners, L.P. is a broadly diversified financial
securities firm that invests in publicly traded and private debt issues of both
large and middle market companies. Cerberus also provides financing for
companies seeking capital for mergers, acquisitions and working capital.
Northstar believes, based on prior discussions with Cerberus, that Cerberus
intends to work closely with management to build a mutually beneficial long
term relationship. To that end, Northstar and Cerberus Partners intend to
commence negotiations immediately to establish a permanent restructuring of the
company's senior debt that would cure all existing defaults and contemplate a
viable repayment schedule.
Thomas W. Zaucha, Chairman and CEO stated, "Our movement toward working closely
with Cerberus Partners will enable Northstar to accomplish financial goals on
several fronts both in terms of debt restructuring and stability. We view this
partnership very favorably for the future as we continue our forward progress
in restoring the Company to financial health."
Northstar Health Services, Inc. is a leading regional provider of physical
rehabilitation, mobile diagnostics and contracted long term care services at
outpatient rehabilitation clinics and by contract to other healthcare
facilities in Pennsylvania, Ohio and West Virginia.
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