Monarch Dental says banks demand repayment

New York, Sept. 6 - Monarch Dental Corp. said the bank syndicate for its credit facility demanded immediate payment in full of the $63.1 million outstanding on the facility.

Monarch said its lenders have the right to use cash balances in its bank accounts to set off part of the debt and could also foreclose on its assets or force it into bankruptcy.

As previously announced, the Dallas dental office manager does not have the funds to repay the credit facility which expired on July 1.

Monarch said it is in discussions with its credit facility lenders but said there can be no assurance it will be obtain an amendment or forbearance. Monarch has hired Banc of America Securities to explore strategic alternatives such as a sale of the company, an equity investment or a sale of all or part of its assets.

If the lenders use Monarch's cash balances, the company said its financial condition and results of operations would be materially and adversely affected.

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