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Exhibit 99.1
[Logo of Vencor, Inc. appears here]
CONTACT: Richard A. Schweinhart
Senior Vice President and Chief Financial Officer
(502) 596-7379
Richard A. Lechleiter
Vice President, Finance,
Corporate Controller and Treasurer
(502) 596-7734
VENCOR RECEIVES COURT APPROVAL TO EXTEND MATURITY
OF ITS DEBTOR-IN-POSSESSION FINANCING
Louisville, KY (October 25, 2000) ---Vencor, Inc. (the "Company") today
announced that the United States Bankruptcy Court for the District of Delaware
(the "Court") approved an amendment (the "Amendment") to the Company's debtor-
in-possession financing (the "DIP Financing") to extend its maturity until
January 31, 2001. The Amendment also revises and updates certain financial
covenants. In addition, the Amendment extends through November 22, 2000 the
period of time for the Company to file the appropriate pleadings to request
confirmation and consummation of its plan of reorganization.
The DIP Financing and existing cash flows will be used to fund the
Company's operations during its restructuring. As of October 25, 2000, the
Company had no outstanding borrowings under the DIP Financing.
The Court also approved an amendment to the previously announced commitment
letter among the Company and certain of the DIP lenders (the "Commitment
Letter") to extend the date by which Court approval must be obtained for the
Commitment Letter to be effective through January 31, 2001. Pursuant to the
Commitment Letter, certain of the DIP lenders would finance an amended and
restated debtor-in-possession credit agreement (the "Restated DIP") that would
become effective in the event the Company became involved in legal proceedings
against Ventas, Inc. (NYSE: VTR). The amendment to the Commitment Letter also
extends to January 31, 2001 the date by which litigation would need to be
commenced with Ventas. The consummation of the Restated DIP also would be
subject to other customary conditions contained in the Commitment Letter.
On September 29, 2000, the Company filed its proposed plan of
reorganization with the Court. At this time, the Company has adjourned the
hearing seeking approval of the Commitment Letter and the Restated DIP in light
of the status of the current negotiations with its major constituencies to
finalize the terms of its proposed plan of reorganization.
Vencor and its subsidiaries filed voluntary petitions for
reorganization under Chapter 11
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with the Court on September 13, 1999.
Vencor, Inc. is a national provider of long-term healthcare services
primarily operating nursing centers and hospitals.
Certain statements set forth above, including, but not limited to,
statements containing words such as "anticipate," "believe," "plan," "estimate,"
"expect," "intend," "may" and similar expressions are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are inherently uncertain, and stockholders must
recognize that actual results may differ materially from the Company's
expectations as a result of a variety of factors, including, without limitation,
those discussed below. Such forward-looking statements are based on
management's current expectations and include known and unknown risks,
uncertainties and other factors, many of which the Company is unable to predict
or control, that may cause the Company's actual results or performance to differ
materially from any future results or performance expressed or implied by such
forward-looking statements. These statements involve risks, uncertainties and
other factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission. Factors that may affect the plans or
results of the Company include, without limitation, the ability of the Company
to continue as a going concern; the delays or the inability to complete and/or
consummate the Company's plan of reorganization; the ability of the Company to
operate pursuant to the terms of the DIP Financing; the Company's ability to
satisfy the conditions to effectuate the Restated DIP; the ability of the
Company to operate successfully under the Chapter 11 cases; risks associated
with operating a business in Chapter 11; adverse actions which may be taken by
creditors and the outcome of various bankruptcy proceedings; adverse
developments with respect to the Company's liquidity or results of operations;
the Company's ability to attract patients given its current financial position;
the ability of the Company to attract and retain key executives and other
personnel; the effects of healthcare reform and legislation on the Company's
business strategy and operations; the Company's ability to control costs,
including labor costs in response to the prospective payment system,
implementation of its Corporate Integrity Agreement and other regulatory
actions; adverse developments with respect to the Company's settlement
discussions with the United States government concerning ongoing investigations;
and the dramatic increase in the costs of defending and insuring against alleged
patient care liability claims. Many of these factors are beyond the control of
the Company and its management. The Company cautions investors that any
forward-looking statements made by the Company are not guarantees of future
performance. The Company disclaims any obligation to update any such factors or
to announce publicly the results of any revisions to any of the forward-looking
statements to reflect future events or developments.
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