May 7 2011
MedCath Corporation (Nasdaq: MDTH) announced today it has completed the sale of its ownership interest and management agreement in Coastal Carolina Heart to New Hanover Regional Medical Center (Wilmington, North Carolina). Coastal Carolina Heart is a component of the Company's MedCath Partners division and provides certain catheterization laboratory management services to New Hanover Regional Medical Center.
Pursuant to transaction terms, MedCath received $5.0 million for its 9.2% ownership interest and management agreement in Coastal Carolina Heart. MedCath will also receive, over the next several months, it's pro rata share of the additional funds from the liquidation of the venture's working capital. MedCath anticipates that it will retain approximately $4.0 million from the transaction, after closing costs and taxes. Today's transaction is in addition to yesterday's related announcement that MedCath sold a significant portion of MedCath Partners operations valued at $25.0 million. MedCath anticipates retaining approximately $16.0 million from that transaction after collection of retained accounts receivable, payment of known liabilities, closing costs and taxes.
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