DENVER, Feb. 8, 2001 (PRIMEZONE) -- An independent committee of the Board of Directors of Coram Healthcare Corporation (OTCBB:CRHEQ) issued the following statement today in response to a press release by the Equity Committee regarding the Equity Committee's most recent motion in the company's ongoing voluntary Chapter 11 reorganization before the U.S. Bankruptcy Court for the District of Delaware:
"We believe the Equity Committee's motion requesting permission of the Court to file a lawsuit against a Coram noteholder and former board member, as well as Coram's current chairman, president and chief executive officer, is not in the best interest of Coram and the material statements in the motion and attendant press release are demonstrably false and destructive to the value of Coram.
"By any reasonable measure, Coram is stronger and more valuable today than it was when Mr. Crowley joined the Company. This is a result of Mr. Crowley's leadership and operational focus. We believe the facts show that he has worked effectively to improve the performance and the value of Coram.
"Professional valuation analyses of Coram were performed by three different outside experts as part of the reorganization. After hearing testimony related to studies done on behalf of the Company, the Creditors Committee and the Equity Committee, and despite operational and financial improvements in 2000, the Court observed that Coram is insolvent and does not have enough asset value to satisfy its obligations to its creditors.
"We believe that the effect of Coram's financial condition is that Coram's debt eliminates any common shareholder value and that the Equity Committee is now pursuing inappropriate and disruptive means to avoid acceptance of this unfortunate fact by using a frivolous lawsuit to try to obtain what would likely be unavailable to them in a fair and equitable reorganization of Coram's capital structure.
"As part of our continuing effort to accomplish a fair and equitable reorganization, at our request the Company last week filed a motion with the Court requesting permission to retain former New York state Comptroller and bankruptcy expert Harrison J. Goldin as an independent, impartial analyst to review the process leading to the bankruptcy filing and to review the Company's plan of reorganization and other related matters as appropriate. If our motion is approved, Mr. Goldin would report his findings to the Court and other interested parties.
"We believe the Equity Committee's motion and press release are part of an attempt to deter the Court from following this independent review process - a process which we believe would lead to a fair and equitable plan of reorganization. We welcome a thorough, timely, fair and independent review of this matter."
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.