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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) May 31, 1999
SUN HEALTHCARE GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-12040 85-0410612
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
101 SUN AVENUE, N.E., ALBUQUERQUE, NEW MEXICO 87109
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(Address of principal executive offices) (Zip Code)
(505) 821-3355
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Registrant's telephone number, including area code
NOT APPLICABLE
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On May 31, 1999, Sun Healthcare Group, Inc. ("Sun") announced that the
waiver of covenant defaults under its bank agreement expired on May 28 and that
its bank lenders exercised their right to prohibit Sun from making the
semiannual interest payment on Sun's 9-3/8% Subordinated Notes.
Sun's press release is attached to this Current Report on Form 8-K as
Exhibit 99.1 and is incorporated by reference herein and made a part hereof.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
99.1 Press Release dated May 31, 1999.
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.
SUN HEALTHCARE GROUP, INC.
By: /s/ William C. Warrick
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Name: William C. Warrick
Title: Vice President, Corporate Controller
Dated: June 8, 1999
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INDEX TO EXHIBITS
EXHIBIT NO. IDENTITY OF EXHIBIT
99.1 Press release issued by the Registrant on May 31, 1999.
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Exhibit 99.1
SUN HEALTHCARE GROUP, INC.
Contact: Marjorie Goldstein (investors)
Phyllis Goodman (media)
505-821-3355
SUN HEALTHCARE GROUP PREVENTED FROM MAKING INTEREST PAYMENT ON BONDS
ALBUQUERQUE, N.M. May 31, 1999 - Sun Healthcare Group, Inc. (NYSE:SHG)
announced today that the waiver of covenant defaults under its bank agreement
expired on May 28, and that it will not make the May 31 semiannual interest
payment on the company's 9? % Subordinated Notes. Although the company has the
funds to make the payment, its bank lenders have exercised a contractual right
blocking the company's ability to do so.
The company continues to have discussions with its banks about a long-term
amendment of its credit facility. However, unless lifted by the banks, the
payment block will continue until Nov. 23, 1999. The company believes it has
sufficient funds to pay its day-to-day trade obligations.
Separately, Sun announced the retention of Donaldson, Lufkin & Jenrette as
financial adviser to the company.
Headquartered in Albuquerque, N.M., Sun Healthcare Group, Inc., is a
diversified international long-term care provider. Sun companies operate
long-term and postacute care facilities in the United States, the United
Kingdom, Spain, Germany and Australia. Sun subsidiaries provide therapy and
pharmacy services, fulfill the medical supply needs of nursing homes, and offer
a comprehensive array of ancillary services for the healthcare industry.
Statements contained in this press release that are not historical
statements, including but not limited to statements containing the word
"believe," constitute forward-looking statements within the meaning of federal
law. The company cautions investors that forward-looking statements are not
guarantees of future performance, and they are subject to numerous uncertainties
and risks that could cause the company's actual results or performance to
materially differ from management's current expectations. These uncertainties
and risks include but are not limited to the company's ability to obtain an
amendment to its bank credit facility, the company's continuing ability to
service its debt obligations, the company's ability to successfully implement
its plans to respond to PPS, the effects of changes in laws and regulations
affecting the healthcare industry, the integration of company acquisitions in
recent years, and such other factors as detailed from time to time in the
company's SEC filings including Sun's annual report on form 10-K/A for the
fiscal year ended December 31, 1998.