Printer Friendly

GREENERY REHABILITATION GROUP ANNOUNCES PLANS OF REORGANIZATION FILED FOR HEALTHCARE INTERNATIONAL, INC. AND SUBSIDIARIES

GREENERY REHABILITATION GROUP ANNOUNCES PLANS OF REORGANIZATION FILED FOR HEALTHCARE INTERNATIONAL, INC. AND SUBSIDIARIES
 AUSTIN, Texas, Oct. 21 /PRNewswire/ -- Plans of reorganization under Chapter 11 were recently filed for seven of the eight operating subsidiary hospitals of Healthcare International, Inc. (AMEX: HII). The plans were filed in the U.S. Bankruptcy Court for the Western District of Texas, Austin Division.
 The plans were submitted and sponsored by the affected subsidiary corporations, HII and by Greenery Rehabilitation Group, Inc. (NYSE: GRG), a secured creditor and controlling shareholder of HII.
 The filed plans concern the following operations of HII's subsidiaries:
 Healthcare Rehabilitation Center, a 179-bed rehabilitation hospital in Austin, Texas;
 Laurel Ridge Hospital, a 180-bed psychiatric hospital in San Antonio, Texas;
 The Brown Schools of San Marcos, a 265-bed psychiatric hospital in San Marcos, Texas;
 Community Living Centers, six residential living centers, with 100 beds, for neurologically impaired patients in the area of Austin, Texas;
 The Oaks Treatment Center, a 120-bed psychiatric hospital in Austin, Texas;
 Healthcare Rehabilitation Center at Ramsey Place, a 56-bed specialty rehabilitation hospital in Austin, Texas;
 Cumberland Hospital, a 84-bed rehabilitation hospital in New Kent, Va.;
 Six of the seven hospital operations included in the filed plans are conducted on premises leased from, or mortgaged by, HealthVest (AMEX: HVT). Each of the plans provides that the HVT leases will be assumed and assigned to new corporations to be organized and owned by Greenery Group. In addition, Greenery Group will pay a total of $22.75 million for the going business values of these subsidiaries. Approximately $8.9 million will be repaid to GRG in satisfaction of its secured claims and the balance of the purchase price will be available to satisfy claims of other creditors.
 An unusual feature of the filed plans is that they seek to affect reorganization of the subsidiary corporations rather than the parent corporation. On Sept. 30, HII and HVT entered a partial settlement by which HII surrendered to HVT the leaseholds on certain psychiatric hospitals which had a history of operating losses and HVT agreed to waive all cross default and cross guarantee claims against the remaining eight hospital operations of HII's subsidiaries. This settlement made it economically feasible to submit the present plans.
 Under the proposed plans, its is expected that administrative creditors and trade creditors and suppliers to the continuing hospitals will be paid in full. Based upon the filed plans it is not possible to determine how creditors, including holders of publicly traded subordinated debentures, or shareholders of the parent corporation, HII itself, will be treated. Whether or not these parties receive a distribution and the amount of any such distribution will depend upon the outcome of the litigation being pursued by HII and its creditors Committee against HVT. The litigation was commenced in July and alleges that HVT's claims against HII should be recharacterized and subordinated to creditors and shareholders of HII because HVT's claims arose out of a "Ponzi-like scheme" to defraud those parties. The Bankruptcy Court, acting upon the motion of GRG and certain bondholders, recently appointed an examiner to investigate the factual allegations underlying the lawsuit.
 A spokesman for HII stated that HII had recently approached HVT in an effort to discuss settlement so that the entire HII bankruptcy proceedings might be concluded. "Unfortunately, in my view, HealthVest seems to have little interest in a constructive dialogue at this time."
 At the same time that the current plans were filed, HII and GRG filed pleadings in the bankruptcy court suggesting that the court establish a procedure to permit HVT or any other party in interest to offer higher cash prices for the subsidiaries' businesses. The spokesman stated that both HII and GRG believe the plans represent full and fair value in the present circumstances, and that serious, unconditional cash offers for higher amounts, if any are forthcoming will be considered.
 The eighth hospital currently operated by HII's subsidiaries is West Pines Hospital in Denver. The Plan of Reorganization for that hospital has been delayed because on-going negotiations with its landlord, Lutheran Medical Center of Denver, have not yet been concluded. The spokesman for both HII and GRG stated that these negotiations may be concluded and made known in a separate plan during November.
 Greenery Rehabilitation Group, Inc. is headquartered in Newton, Mass. Greenery Group currently operates 12 rehabilitation and skilled nursing facilities in eight states.
 -0- 10/21/92
 /CONTACT: Gerard M. Martin, chairman, or George M. Ferencik, president, 617-244-4744, of Greenery Group/
 (GRG HII HVT) CO: Greenery Rehabilitation Group, Healthcare International, Inc. ST: Massachusetts; Texas IN: HEA SU: RCN


DH -- NE022 -- 3171 10/21/92 17:46 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1992
Words:773
Previous Article:DAILY JOURNAL ANNOUNCES LIMITED STOCK REPURCHASE PROGRAM
Next Article:DAMES & MOORE REORGANIZES INTERNATIONAL DIVISION
Topics:


Related Articles
GREENERY REHABILITATION GROUP ANNOUNCES NET INCOME FOR THE QUARTER ENDED MARCH 31, 1992
GREENERY REHABILITATION GROUP ANNOUNCES EARNINGS FOR THE QUARTER ENDED JUNE 30, 1992
GREENERY REHABILITATION GROUP ANNOUNCES EARNINGS FOR THE QUARTER ENDED DECEMBER 31, 1992
GREENERY REHABILITATION GROUP ANNOUNCES WITHDRAWAL FROM INVESTMENT IN HEALTHCARE INTERNATIONAL, INC.
GREENERY REHABILITATION GROUP ANNOUNCES RESULTS OF THE QUARTER ENDED MARCH 31, 1993
GREENERY REHABILITATION GROUP ANNOUNCES RESULTS OF THE QUARTER ENDED JUNE 30, 1993
HORIZON HEALTHCARE CORP. AND GREENERY REHABILITATION GROUP, INC. ANNOUNCE MERGER UPDATE
HORIZON HEALTHCARE CORPORATION ANNOUNCES RECORD SECOND QUARTER RESULTS
HEALTH AND REHABILITATION PROPERTIES TRUST COMPLETES SALE OF THREE FACILITIES AND RELATED TRANSACTIONS WITH HORIZON HEALTHCARE CORP.
HORIZON HEALTHCARE CORP. ANNOUNCES RECORD THIRD QUARTER RESULTS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters