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HLTH Corp. says it received default notice

By Associated Press
June 19, 2008 | Comments (0)

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HLTH Corp., which operates the WebMD health information Web site, said Thursday it received a letter from a law firm claiming the company has defaulted on its convertible notes.

The company said the June 18 letter included a notice of default related to 3 1/8 percent notes due in 2025.

The law firm, which represents holders of the notes, said the default occurred because HLTH has stated it does not plan to issue change of control notices with respect to its merger with WebMD Health Corp. and does not plan to adjust the conversion rate of the notes following the merger.

HLTH claimed the notice was without merit, adding that the merger does not constitute a change of control or allow for a conversion-rate adjustment.

In February, HLTH said it will merge into its WebMD subsidiary in a deal valued at $2.31 billion. HLTH currently owns 84 percent of WebMD.

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