SCHEDULE 14C
Information Statement Pursuant to Section 14(c) of the
Securities Exchange Act of 1934 (Amendment No. O)
Check Appropriate Box:
[ X ] Preliminary Information Statement
[ X ] Confidential, for Use of the Commission Only (as
permitted by Rule 14c-5(d)(2)
[ ] Definitive Information Statement
MEDICAL RESOURCE COMPANIES OF AMERICA
(Name of Registrant as Specified In Charter)
Payment of Filing Fee:
[ X ] $125 per Exchange Act Rule 0-11(c)(11)(ii), or 14c-5(g)
[ ] Fee computed on table below per Exchange Act Rules
14c-5(g) and 0-11.
1. Title of each class of securities to which transaction
applies: Common Stock par value $0.01, Series B Preferred Stock,
par value $0.10
2. Aggregate number of securities to which transaction
applies: Common Stock 3,441,517, Series B Preferred Stock, 14,025
3. Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the amount
on which the filing fee is calculated and state how it was
determined): N/A
4. Proposed maximum aggregate value of transaction: N/A
5. Total fee paid: $125
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided
by Exchange Act Rule 0-11()a)(2) and identify the
filing for which the offsetting fee was paid
previously. Identify the previous filing by
registration statement number, or the Form or Schedule
and the date of its filing.
1. Amount Previously Paid: N/A
2. Form, Schedule or Registration Statement No.: N/A
3. Filing Party: N/A
4. Dated Filed: N/A<PAGE>
MEDICAL RESOURCE COMPANIES OF AMERICA
4265 Kellway Circle
Addison, Texas 75249
INFORMATION STATEMENT
FOR
ACTION BY CONSENT OF STOCKHOLDERS
WE ARE NOT ASKING FOR A PROXY
AND YOU ARE NOT REQUESTED TO
SEND US A PROXY.
This Information Statement is furnished in connection with
the taking of action by the written consent of a majority of
Stockholders (the "Written Consent") of Medical Resource
Companies of America, a Nevada corporation (the "Company"), to be
effective on or about March 27, 1996.
This Information Statement is not to be regarded as proxy
solicitation material. The approximate date on which this
Information Statement is first sent to Stockholders is March 7,
1996.
VOTING RIGHTS, ACTION TO BE TAKEN
AND PRINCIPAL SHAREHOLDERS
In accordance with Nevada law and the Company's bylaws,
whenever Stockholders are required or permitted to take any
action, such action may be taken without a meeting by means of a
Written Consent setting forth the action so taken, signed by the
holders of a majority of all outstanding shares entitled to vote
thereon.
On each matter entitled to be submitted to a vote or the
subject of a consent of the Stockholders, each Stockholder is
entitled to one vote in person or proxy for each share owned of
record. We are not asking you for a proxy and you are not
requested to send us a proxy or consent.
At the close of business on March 7, 1996, there were
outstanding 3,441,517 shares of Common Stock and 14,025 shares of
Series B Preferred Stock, the only shares of the Company entitled
to vote, held of record by approximately 3,887 and 22
Stockholders of record, respectively. All share numbers in this
Information Statement have been adjusted to reflect the
one-for-five reverse split of the Common Stock on December 1,
1995. Stockholders still holding certificates representing
pre-split shares should contact the Company's transfer agent,
American Stock Transfer & Trust Company, at 40 Wall Street, New
York, New York 10005, to obtain a Letter of Transmittal for the
exchange of their shares.
On March 7, 1996, 1,210,000 shares of Common Stock,
representing approximately 35.2% of shares outstanding, were held
through a wholly owned corporation by James R. Gilley, President
and Chief Executive Officer of the Company. An additional
1,195,000 shares (approximately 34.7% of shares outstanding) were
held of record by Mr. Gilley, Mr. Gilley's spouse and adult
children, both as individuals and as trustees for various family
trusts. All such persons have indicated they will execute the
written consent, which will insure approval by the Stockholders.
CHANGE OF NAME
The sole purpose of the Written Consent is to authorize an
amendment to the Company's Articles of Incorporation to change
the name of the Company from "Medical Resource Companies of
America" to "The Greenbriar Corporation". Such amendment was
authorized by the Board of Directors of the Company on November
17, 1995, which has recommended its approval to the Stockholders.
During the past year, the Company has significantly changed
the focus of its business. It has sold all of its retirement and
nursing home properties and has disposed of its medical products
subsidiaries that manufactured electric convenience vehicles
(ECV) and provided ECV's, wheelchairs and strollers to theme
parks. The Company's new focus is on developing and managing
residential care facilities providing assistance to the elderly
with the activities of daily living. The Company has nine such
assisted living centers under development, which will be operated
under the name "The Greenbriar at [location]".
In addition, the Company has announced that it is acquiring
an additional 17 assisted living centers in its consolidation
with Wedgwood Retirement Inns, Inc.
The Company believes that its existing name will not
adequately identify the Company's primary activity or have
anything in common with its chain of assisted living centers and
desires to amend its name accordingly.
Following the effectiveness of the name change, the Company
will change its trading symbol on the American Stock Exchange
from "MRA" to "GBR". There will be no exchange of stock
certificates; instead, existing supplies of stock certificates
will be overprinted with the Company's new name and used in all
future issuances. Existing outstanding certificates bearing the
name "Medical Resource Companies of America" will continue to
represent shares of outstanding Common or Preferred Stock
following the name change.
<TABLE>
PRINCIPAL STOCKHOLDERS AND SECURITY OWNERSHIP
OF MANAGEMENT
The following table sets forth as of March 7, 1996 certain
information with respect to all Stockholders known by the Company
to own beneficially more than 5% of the Company's outstanding
Common Stock or Series B Preferred Stock (which are the only
outstanding classes of voting securities of the Company), as well
as information with respect to the Company's Common Stock or
Series B Preferred Stock owned beneficially by each director, by
each executive officer whose compensation from the Company in
1995 exceeded $100,000 and by all directors and officers
(including certain key officers of subsidiaries) as a group.
Unless otherwise indicated, each of such Stockholders has sole
voting and investment power with respect to the shares
beneficially owned.
<CAPTION>
Series B
Preferred Stock Common Stock
Name and Address Number Percent Number Percent
oF Beneficial of Shares of of of
Owner Class Shares Class
<S> <C> <C> <C> <C>
James R. Gilley
4265 Kellway Circle
Addison, Texas 75244 - - 1,810,000<F1> 49.7%
Sylvia M. Gilley
13711 Creekside Place
Dallas, Texas 75248 - - 936,000<F1><F2> 27.2%
W. Michael Gilley
4265 Kellway Circle
Addison, Texas 74244 - - 261,000<F3> 9.7%
Gene S. Bertcher
4265 Kellway Circle
Addison, Texas 75244 - - 74,000<F4> 2.1%
Robert L. Griffis
4265 Kellway Circle
Addison, Texas 75244 - - 30,000<F5> 0.1%
Michael E. McMurray
5330 Merrick Rd.
Massapequa, NY 11758 - - - -
Matthew G. Gallins
715 Stadium Drive
Winston-Salem, NC 27101 - - 20,000<F6> 0.1%
Paul G. Chrysson
1045 Burke Street
Winston-Salem, NC 27101 - - - -
Richards D. Barger
945 San Marino Ave.
San Marino, CA 91108 - - 200 -
Steven R. Hague
1650 Bank One Tower
221 W. Sixth Street
Austin, Texas 78701 - - - -
Don C. Benton
9200 Inwood Road
Dallas, Texas 75220 - - - -
Columbia General Corp.
5949 Sherry Lane
Dallas, Texas 75225 6,690 47.7% - -
Stan Mallory
P.O. Box 660
Mineola, Texas 75773 3,298 23.5% - -
All officers and
directors as a group
(13 person) - - 2,233,020 61.0%
_________________________
<FN>
<F1> Consists of 1,210,000 shares owned by JRG Investments, Inc.
("JRG"), a corporation wholly owned by Mr. Gilley, 400,000
shares owned by a grantor trust for the benefit of James R.
and Sylvia M. Gilley and options to purchase 200,000 shares
of Common Stock at $10.75 per share, exercisable through
December 1, 2000. Mr. Gilley and JRG have pledged 1,166,363
shares of Common Stock, and Mr. Gilley has pledged all of
his shares in JRG, to MS Holding Corp., a nonaffiliated
entity, as collateral for repayment of a $5,700,000
promissory note payable by JRG to MS Holding Corp. The note
requires payment of annual interest only until May 23,
1997, when the principal balance and all accrued interest is
due and payable. Failure to repay such note when due could
result in change in the control of the Company. Of the
shares owned by the grantor trust, 200,000 shares were
acquired by the trust from the Company in November 1993 in
consideration of a $2,250,000 partial recourse promissory
note executed by the grantor trust and Mr. Gilley (as
co-maker). This note bears interest at an annual rate of 5.5%
until November 2003, when the entire principal balance and
all accrued interest is due. The note is collateralized by
the 200,000 shares purchased by the grantor trust, and the
grantor trust and Mr. Gilley (as co-maker) have personal
recourse only for the first 20% of the principal balance.
</FN>
<FN>
<F2> Mrs. Gilley is the spouse of James R. Gilley. Consists of
the 400,000 shares owned by the grantor trust for the
benefit of Mr. and Mrs. Gilley, and 536,000 shares owned of
record. Other than shares owned by the grantor trust, Mrs.
Gilley disclaims any beneficial ownership of the shares
owned by Mr. Gilley and JRG. Mr. Gilley and JRG disclaim
beneficial ownership of the shares owned by Mrs. Gilley.
</FN>
<FN>
<F3> Consists of 80,000 shares owned of record, 46,000 shares
issued for promissory notes of $237,500, for which the
shares are pledged as collateral, 5,000 shares owned by
Bartram Investment Properties, Inc., a wholly owned
corporation, and 130,000 shares owned by five trusts for
which Mr. Gilley acts as co-trustee for the benefit of the
children and grandchildren of James R. and Sylvia M. Gilley.
</FN>
<FN>
<F4> Consists of 54,000 shares issued for promissory notes of
$72,500, for which the shares are pledged as collateral, and
options to purchase 20,000 shares for $11.25 per share
vesting over nine years, of which 2,000 shares vested
immediately and the remainder vest over a nine year period
beginning January 1, 1994.
</FN>
<FN>
<F5> In November 1992, Mr. Griffis obtained a loan from the
Company for $75,000 which was used to exercise options to
purchase 30,000 shares of the Company's Common Stock. The
loan is collateralized by the shares purchased by Mr.
Griffis.
</FN>
<FN>
<F6> Consists of 20,000 shares owned by a trust for which Mr.
Gallins acts as co-trustee for the benefit of one of the
grandchildren of James R. and Sylvia M. Gilley.
</FN>
</TABLE>
STOCKHOLDER PROPOSALS
Proposals submitted by a Stockholder of the Company for
action at the 1997 annual meeting of the Company's stockholders
must have been received by the Company at its principal executive
offices at 4265 Kellway Circle, Addison, Texas 75244, no later
than December 29, 1996, in order to be included in the Company's
proxy materials relating to that meeting.
GENERAL
As of the date of this statement, the Company has no
knowledge of any business which will be presented for
consideration in the Written Consent other than as described in
the annexed Notice of Action by Consent of Stockholders. The
Company will pay the costs of preparing, assembling and mailing
this Information Statement and the material enclosed herewith.
In addition, the Company will reimburse banks and brokers for
their reasonable out-of-pocket expenses incurred in connection
with the distribution of the Information Statement.
By Order of the Board of
Directors
/s/ James R. Gilley
James R. Gilley, President
Dallas, Texas
March 7, 1996
<PAGE>
CONSENT OF A MAJORITY IN
INTEREST OF THE
STOCKHOLDERS OF
MEDICAL RESOURCE COMPANIES OF AMERICA
March 27, 1996
The undersigned stockholders of Medical Resource Companies
of America, representing more than a majority of all shares
issued, outstanding and entitled to vote, have taken the
following stockholder action without a meeting, pursuant to the
provisions of Chapter 78, Section 320 of the Nevada Revised
Statutes:
RESOLVED, that the Corporation shall amend its
Articles of Incorporation pursuant to the authorization
of the Board of Directors on November 17, 1995, in
order to change its name to "The Greenbriar
Corporation".
RESOLVED FURTHER, that the Corporation is
authorized to file with the Nevada Secretary of State
the Articles of Amendment in the form attached hereto.
EXECUTED as of the date above written.
JRG INVESTMENTS, INC.
By: /s/ James R. Gilley
James R. Gilley,
President
THE APRIL TRUST
By: /s/ James R. Gilley
James R. Gilley, Trustee
/s/ Sylvia M. Gilley
Sylvia M. Gilley
/s/ W. Michael Gilley
W. Michael Gilley
<PAGE>
CERTIFICATE OF AMENDMENT
OF
MEDICAL RESOURCE COMPANIES OF AMERICA
The following Certificate of Amendment is filed pursuant to
Ch. 78, Sections 385 and 390 of the Nevada Revised Statutes:
1. Article One of the Articles of Incorporation is hereby
amended to read as follows: "The name of the Corporation is The
Greenbriar Corporation".
2. Such amendment has been duly authorized by the Board of
Directors at a meeting on November 17, 1995 and by the
Stockholders on March ___, 1996 by means of a majority written
consent of the holders of ____% of all shares outstanding and
entitled to vote, acting pursuant to Chapter 78, Section 320 of
the Nevada Revised Statutes.
EXECUTED by the undersigned duly authorized officer this
______ day of March, 1996.
MEDICAL RESOURCE COMPANIES
OF AMERICA
By: /s/ James R. Gilley
James R. Gilley,
President
STATE OF TEXAS
COUNTY OF DALLAS
The foregoing instrument was acknowledged before me this
_______ day of March, 1996, by JAMES R. GILLEY, President of
MEDICAL RESOURCE COMPANIES OF AMERICA.
_____________________________
Notary Public for the State of
Texas
