Medical Facilities Corporation's Proposed Conversion to Traditional Common Share Structure Receives Securityholder Approval

TORONTO, May 13 /CNW/ - Medical Facilities Corporation (TSX: DR.UN, DR.DB) (the "Company") today announced that its previously announced proposed conversion from the Company's current IPS structure to a traditional common share structure (the "Conversion"), received the requisite approvals of holders of common shares and holders of 12.5% subordinated notes, respectively, at a duly constituted annual and special meeting of common shareholders and a duly constituted special meeting of subordinated noteholders, held concurrently on May 13, 2011. Full details of the Conversion are described in the Company's Management Information Circular dated April 13, 2011.

The Conversion remains subject to approval by the Supreme Court of British Columbia, which will consider the proposed plan of arrangement under the Business Corporations Act (British Columbia) to effect the Conversion on May 24, 2011. The Conversion will be completed and effective, subject to court approval, as of May 31, 2011.

About Medical Facilities
Medical Facilities owns controlling interests in four specialty surgical hospitals, located in South Dakota and Oklahoma, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to holders of its IPS units, of which a portion is interest on subordinated debt and a portion is dividend. Following completion of the Conversion, the Company will maintain its current business strategy. In addition, the Company does not intend to change its current distribution levels and timing. For more information, please visit www.medicalfacilitiescorp.ca.

Cautionary Note Regarding Forward-Looking Statements
Certain statements in this news release may constitute "forward-looking statements", which reflect the expectations of management of the Company regarding future events and outcomes, including without limitation court approval of, and completion of, the Conversion, and the intention of the Company to continue to pay out the same level of distributions following completion of the Conversion. Material factors or assumptions that were applied in making these forward-looking statements include, but are not limited to: maintaining current operating cash flow generated by the Company's subsidiaries, continuing to meet financial requirements for the Company's operations and the execution of its growth strategy, and the satisfaction of solvency tests imposed by applicable legislation. Although the forward-looking statements contained in this news release are based upon what are believed to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and any differences may be material. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise them to reflect new events, facts or circumstances.  For a description of risks that could cause the Company's actual results to materially differ from its current expectations, please see "Risk Factors" in the management information circular dated April 13, 2011 and "Risk Factors" in the Company's annual information form dated March 22, 2011, available at www.sedar.com.

SOURCE Medical Facilities Corporation

For further information:

Michael Salter
Chief Financial Officer
Medical Facilities Corp.
(416) 848-7380 or 1-877-402-7162
          Salvador Diaz
Investor Relations
TMX Equicom
(416) 815-0700 or 1-800-385-5451 ext. 242
sdiaz@equicomgroup.com

 


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.