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CBL FILES FOR CHAPTER 11 PROTECTION

 LOS ANGELES, Dec. 31 /PRNewswire/ -- CBL Medical Inc. (NASDAQ: CBLM), announced today that on Dec. 30, 1993, it filed for protection under Chapter 11 of the U.S. Bankruptcy Code. As a consequence of the filing, the trading symbol will be changed to CBLMQ.
 Robert B. Mishkin, chief executive officer and chairman of the board said, "There has been a breakdown in negotiations with the Physician Groups' lender, and at this time the lender is not willing to structure a paydown of the line of credit. This structured paydown would have allowed the Physician Groups to pay the company for day-to-day operations. The company expects to shortly have in place a debtor in possession financing. This will enable the company, as debtor in possession, to preserve its assets while management formulates a reorganization plan. The company intends to engage an investment banking firm to assist it in creating a plan which will be acceptable to the creditors and there are no assurances that management will succeed in preserving shareholder value. Because of current market capitalization, the company no longer meets the requirements for continued listing on the NASDAQ National Market; however as of Dec. 31, 1993, the company's common stock will trade on the NASDAQ SmallCap Market."
 -0- 12/31/93
 /CONTACT: Robert B. Mishkin, 310-788-5845/
 (CBLM)


CO: CBL Medical Inc. ST: California IN: HEA SU:

JM-EH -- LA004 -- 8267 12/31/93 09:00 EST
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Publication:PR Newswire
Date:Dec 31, 1993
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