EXHIBIT 99
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For: Avatex Corporation
Contact: Grady E. Schleier
Senior Vice President and Chief Financial Officer
(214) 365-7450
AVATEX CORPORATION ANNOUNCES SETTLEMENT
WITH FOXMEYER CORPORATION TRUSTEE
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Dallas, Texas -- December 8, 2000 -- Avatex Corporation (OTCBB: AVAT)
today announced that it has entered into a settlement agreement with the Trustee
of FoxMeyer Corporation and its subsidiaries with respect to the company's
promissory note obligation owed to the Trustee and the company's 30% interest,
up to the greater of (i) $10,000,000 and (ii) the amount due on the note, in any
net recovery in certain litigation filed by the Trustee. Under the settlement,
Avatex will pay the Trustee $6 million in cash and assign to the Trustee
Avatex's 30% interest in the litigation. The note obligation, which is in the
original principal amount of $8 million, will be deemed satisfied under the
settlement. The settlement is subject to approval by the United States
Bankruptcy Court for the District of Delaware that has jurisdiction over the
bankruptcy cases of FoxMeyer Corporation and its subsidiaries.
Avatex is a holding company that, along with its subsidiaries, owns
interests in other corporations and partnerships. Through Phar-Mor, Inc., its
43% owned subsidiary, Avatex is involved in operating a chain of retail discount
drug stores devoted to the sale of prescription and over-the-counter drugs,
health and beauty aids and other general merchandise.
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