DENVER, Feb. 27, 2001 (PRIMEZONE) -- In keeping with its disclosure obligations, Coram Healthcare Corporation (OTCBB:CRHEQ) today provided the following update in its ongoing voluntary Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware.
Judge Mary Walrath yesterday denied without prejudice the motion of the Equity Committee that sought permission to sue a former board member, Stephen A. Feinberg; Coram's largest noteholder, Cerberus Partners L.P.; and Coram's Chairman, President and CEO, Daniel D. Crowley.
At the same hearing, Judge Walrath granted Coram's motion requesting permission to retain bankruptcy expert and former City of New York Comptroller Harrison J. Goldin as an independent restructuring advisor. He will report to the independent members of Coram's Board of Directors, assisting them in their deliberations with respect to Coram's current status and in the development of a fair and equitable plan of reorganization. In accordance with the court's instructions, it is also anticipated that Mr. Goldin will attempt to mediate a resolution of the pending disputes among the parties in interest.
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.
Note: Except for historical information, all other statements in this press release are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results may vary materially from these forward-looking statements due to important risk factors including the Company's lack of profitability; uncertainties associated with the outcomes of certain pending legal proceedings, including the bankruptcy; the Company's significant level of outstanding indebtedness; the Company's ability to comply with certain government regulations; the Company's need to obtain additional financing or equity; the Company's limited liquidity; and the Company's dependence upon relationships and prices paid by third-party payors for the Company's services; and certain other factors. Certain risk factors are described in greater detail in the Company's Form 10-K Annual Report and 10-Q Quarterly Reports and 8-K Current Reports on file with the Securities and Exchange Commission.