8-K, EX-99.1, 2001-01-19
Previous: VENCOR INC /NEW/, 8-K, 2001-01-19


                                                                    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 of Finance,
          Corporate Controller and Treasurer
          (502) 596-7734


     Louisville, KY (January 18, 2001) ---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 March
31, 2001.  The Amendment also revises and updates certain financial covenants.
In addition, the Amendment extends through March 31, 2001 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 January 17, 2001, the
Company had no outstanding borrowings under the DIP Financing.

     The Company is currently soliciting approval of the Company's fourth
amended plan of reorganization filed with the Court on December 14, 2000 (the
"Amended Plan").  The Court has scheduled a confirmation hearing on the Amended
Plan for March 1, 2001.

     Vencor and its subsidiaries filed voluntary petitions for reorganization
under Chapter 11 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 contained herein, 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 Amended Plan; the ability
of the Company to operate pursuant to the terms of its DIP Financing; the
Company's ability to satisfy the conditions to effectuate a restated debtor-in-
possession financing; 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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