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ElderTrust(TM)
A Healthcare Real Estate 101 East State Street
Investment Trust Suite 100
Kennett Square, PA 19348
T 888.234.REIT
T 610.925.4200
F 610.925.4351
Contact: D. Lee McCreary, Jr.
President & Chief Executive Officer
(610) 925-4200
www.eldertrust.com
ElderTrust Announces U.S. Bankruptcy Court Action
Court Approves Motions As Filed
Transactions Scheduled to be Completed by January 31, 2001
Kennett Square, PA (January 4, 2001)- ElderTrust (NYSE:ETT), a healthcare REIT,
today reported that the U.S. Bankruptcy Court has approved as filed the
Company's agreements with Genesis Health Ventures, Inc. (OTC:GHVIQ.OB) and The
Multicare Companies. As was previously announced, the Company had reached
agreements with Genesis and Multicare to restructure the lease and loan
transactions between the entities. Under the terms approved, the entities have
until January 31, 2001 to complete the transactions required under the
agreements.
"We are very pleased with today's action by the bankruptcy court," said D. Lee
McCreary, Jr., ElderTrust's President and Chief Executive Officer. "Next on our
agenda is the completion of the agreed upon transactions by January 31. This, in
turn, will pave the way for completion of the tentative agreement to extend our
Bank Credit Facility"
The Bank Credit Facility extension agreement is, among other things, subject to
successful completion of the agreements with Genesis and Multicare. There can be
no assurance that agreements with Genesis and Multicare and the extension of the
maturity date of the Bank Credit Facility will be completed as proposed.
Completion of the Credit Facility extension is also subject to the successful
negotiation and execution by ElderTrust and German American Capital Corporation
of definitive documentation relating to the extension.
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the East
Coast of the United States. Since commencing operations in January 1998, and
without giving effect to the agreements with Genesis and Multicare, the Company
has acquired direct and indirect interests in 31 buildings and has loans
outstanding of $31 million, net of allowance, in construction and term financing
on eight additional healthcare facilities.
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ElderTrust
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Certain matters discussed within this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although ElderTrust believes the expectations
reflected in such forward-looking statements are reasonable assumptions, it can
give no assurance that its expectations will be attained. Factors that could
cause actual results to differ materially from ElderTrust's expectations include
the extent to which Genesis and Multicare continue to make lease and loan
payments to the Company, completion of the agreements reached between ElderTrust
and Genesis and Multicare, real estate conditions, the Company's ability to
extend the maturity date of its Bank Credit Facility as described herein,
changes in the economic conditions and other risks detailed from time to time in
the Company's SEC reports and filings. The Company assumes no obligation to
update or supplement forward-looking statements that become untrue because of
subsequent events.
For more information on ElderTrust
visit ElderTrust's website at www.eldertrust.com
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