HearUSA Granted Temporary Restraining Order Against Siemens
March 31, 2011 8:30 AM ET
HearUSA, Inc. (NYSE Amex: EAR) announced that on March 29, 2011, the Appellate Division of the New York State Supreme Court granted the motion by HearUSA for a temporary restraining order against Siemens Hearing Instruments, Inc.
Siemens is now enjoined from declaring HearUSA to be in default under the credit agreement, from engaging in self help to collect under the credit agreement and from making any efforts to seize assets or take control of HearUSA's business pending the May 2, 2011 hearing on HearUSA's motion for a preliminary injunction.
The court ordered the temporary restraining order conditioned upon HearUSA continuing to make all payments currently due under the credit agreement, except the disputed amount relating to the Canadian asset sale.
"The court's decision is a positive step toward resolution of our legal dispute with Siemens regarding an alleged prepayment obligation that we believe has already been satisfied," said Stephen J. Hansbrough, HearUSA's chairman and chief executive officer. "We continue to be current in all payments due to Siemens and will continue to vigorously defend our rights to ensure that Siemens does not improperly foreclose on company assets."
About HearUSA
HearUSA, Inc. is the recognized leader in hearing care for the nation's top managed care organizations through its network of more than 2,000 hearing care providers and 176 company-owned centers. HearUSA is the nation's only hearing care network accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation. HearUSA is also the administrator of the AARP Hearing Care Program, designed to help millions of Americans aged 50+ who have untreated hearing loss.
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