DENVER, JULY 31, 2001 (PRIMEZONE) -- Coram Healthcare Corporation (OTCBB:CRHEQ) and Coram, Inc., collectively referred to as Coram, the Company or the Debtors, today reported that they have filed their Second Joint Plan of Reorganization and Second Joint Disclosure Statement with the U.S. Bankruptcy Court for the District of Delaware in their ongoing Chapter 11 cases.
Coram filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code on August 8, 2000 with the support of the lenders holding the Company's principal debt. The Company's operating subsidiaries have continued to maintain normal patient services and business operations, paying trade creditors currently throughout the process.
The Second Joint Plan of Reorganization differs from the initial Plan of Reorganization primarily in its proposal to increase the distribution to Coram Healthcare General Unsecured Creditors to $3 million from $2 million and, in order to facilitate a consensual resolution with Equity Interests, distribute a new voluntary contribution of up to $10 million in cash to the stockholders of Coram Healthcare on a pro rata, per share basis. These proposed distributions are subject to the terms and conditions described in the Second Joint Disclosure Statement, including approval by at least two-thirds in amount of claims or shares, as applicable, of those voting in these classes, and the Plan itself is subject to confirmation by the Bankruptcy Court.
The terms of the Second Joint Plan of Reorganization were approved by the independent members of the Board of Directors of Coram. They adopted the recommendations of Goldin Associates, LLC, a financial advisory firm specializing in distressed situations whose expertise includes financial advisory services, business valuation services, review of debtors' operations and business plans, solvency analyses, valuation, litigation oversight and management, and service as trustee, examiner, plan administrator, special master, liquidator, mediator and other fiduciary capacities in complex bankruptcy and insolvency situations. Mr. Harrison J. Goldin, a respected, independent insolvency professional who served as Comptroller of the City of New York from 1974 to 1989, heads Goldin Associates. In connection with its retention, Goldin Associates was found by the Court to be a completely disinterested party with respect to the Debtors' estates, with no material connections to the Debtors, the Debtors' management, the Senior Noteholders, the members of the Creditors' Committee or the members of the Equity Committee. The full report of Goldin Associates is included as an attachment to the Second Joint Disclosure Statement.
As proposed in the initial Plan of Reorganization, under the Second Joint Plan, Coram would emerge from bankruptcy as a privately held company and its noteholders would own 100 percent of the stock.
Denver-based Coram Healthcare, through its subsidiaries, including all branch offices, is a national leader in providing quality home infusion therapies and support for clinical trials, medical product development and medical informatics.