CORAM HEALTHCARE CORP
SC 13D/A, 1999-04-15
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
                                  SCHEDULE l3D
                    Under the Securities Exchange Act of 1934
                                (Amendment No. 2)

                          CORAM HEALTHCARE CORPORATION
- --------------------------------------------------------------------------------
                                (Name of Issuer)

                     Common Stock, par value $.001 per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    218103109
- --------------------------------------------------------------------------------
                                 (CUSIP Number)
                                                      with a copy to:
Stephen Feinberg                                     Robert G. Minion, Esq.
450 Park Avenue                                      Lowenstein Sandler PC
28th Floor                                           65 Livingston Avenue
New York, New York  10022                            Roseland, New Jersey  07068
(212) 421-2600                                       (973) 597-2424
- --------------------------------------------------------------------------------
                 (Name, Address and Telephone Number of Persons
                Authorized to Receive Notices and Communications)

                                  April 9, 1999
- --------------------------------------------------------------------------------
             (Date of Event which Requires Filing of this Statement)


If the filing person has previously  filed a statement on Schedule l3G to report
the  acquisition  which is the subject of this  Schedule 13D, and is filing this
schedule because of Section  240.13d-1(e),  240.13d-1(f) or 240.13d-1(g),  check
the following box. [ ]

Note:  Schedules  filed in paper format shall include a signed original and five
copies of the schedule,  including all exhibits.  See Section  240.13d-7(b)  for
other parties to whom copies are to be sent.

*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for  any  subsequent   amendment   containing   information  which  would  alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).


<PAGE>

Cusip No.        218103109                                             
________________________________________________________________________________

1)   Names of  Reporting  Persons/I.R.S.  Identification  Nos. of Above  Persons
     (entities only):

                                Stephen Feinberg
________________________________________________________________________________
2)   Check the  Appropriate Box if a Member of a Group (See  Instructions): 

                (a) Not 
                (b) Applicable

________________________________________________________________________________
3)   SEC Use Only
________________________________________________________________________________
4)   Source of Funds (See Instructions): WC

________________________________________________________________________________
5)   Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d)
     or 2(e): Not Applicable
________________________________________________________________________________
6)   Citizenship or Place of Organization:           United States
________________________________________________________________________________
     Number of                        7) Sole Voting Power:                 *
     Shares Beneficially              8) Shared Voting Power:               *
     Owned by
     Each Reporting                   9) Sole Dispositive Power:            *
     Person With:                    10) Shared Dispositive Power:          *
________________________________________________________________________________
11) Aggregate Amount Beneficially Owned by Each Reporting Person:    21,103,754*
________________________________________________________________________________
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares

    (See Instructions):                               Not Applicable
________________________________________________________________________________
13)  Percent of Class Represented by Amount in Row (11):       29.9%*
________________________________________________________________________________
14)  Type of Reporting Person (See Instructions):       IA, IN
________________________________________________________________________________

*Cerberus  Partners,  L.P.  ("Cerberus") is the holder of $15,174,268  principal
amount  of Series B  Convertible  Subordinated  Notes  due 2008  (the  "Series B
Notes") of Coram Healthcare Corporation (the "Company"); Cerberus International,
Ltd.  ("International") is the holder of $9,644,090 principal amount of Series B
Notes of the  Company;  Ultra  Cerberus  Fund,  Ltd.  ("Ultra") is the holder of
$989,137  principal  amount of Series B Notes of the Company and certain private
investment  funds (the  "Funds") in the  aggregate  are the holder of $7,418,531
principal  amount  of  Series B Notes of the  Company.  The  Series B Notes  are
convertible,  at the option of the holder  thereof,  into shares of Common Stock
(the "Shares") of the Company at the rate of $2.00 per Share,  which  conversion
rate is  subject  to  adjustment  in  certain  circumstances.  Stephen  Feinberg
possesses sole power to vote and direct the disposition of all securities of the
Company  owned by each of  Cerberus,  International,  Ultra  and the  Funds.  In
addition,  $7,238,688  principal  amount of Series B Notes are held of record by
Cerberus,  with respect to which Stephen  Feinberg  exercises sole voting but no
investment  control  over such  Series B Notes and the  Shares  into  which such
Series B Notes are convertible.  Also,  Cerberus,  International,  Ultra and the
Funds are the holders of warrants to purchase,  respectively,  246,637, 327,150,
32,976 and 248,147  additional  Shares  from the  Company  and Stephen  Feinberg
possesses  sole voting but no  investment  control over  warrants to purchase an
additional  16,488  Shares from the  Company  and sole voting but no  investment
control over the Shares underlying such 16,488 warrants.  Thus, for the purposes
of Reg.  Section  240.13d-3,  Stephen  Feinberg  is deemed to  beneficially  own
21,103,754  Shares, or 29.9% of those deemed issued and outstanding  pursuant to
Reg. Section 240.13d-3. See Item 5 for further information.


<PAGE>


Item 5. Interest in Securities of the Issuer.

        Based  upon  information  set  forth in the  Company's  Annual Report on
Form 10-K for the fiscal  year ended  December  31,  1998,  as of March 25, 1999
there  were  issued  and  outstanding  49,426,422  Shares.  As of April 9, 1999,
Cerberus was the holder of $15,174,268  principal amount of Series B Convertible
Subordinated Notes due 2008 of the Company (the "Series B Notes"); International
was the holder of $9,644,090  principal amount of Series B Notes;  Ultra was the
holder  of  $989,137  principal  amount  of  Series B Notes and the Funds in the
aggregate were the holder of $7,418,531  principal amount of Series B Notes. The
Series B Notes are convertible, at the option of the holder thereof, into Shares
at the rate of $2.00 per Share,  which  conversion rate is subject to adjustment
in certain  circumstances.  Stephen  Feinberg  possesses  sole power to vote and
direct  the  disposition  of all  securities  of the  Company  owned  by each of
Cerberus, International,  Ultra and the Funds. In addition, $7,238,688 principal
amount of Series B Notes are held of  record by  Cerberus  but are  beneficially
owned by  certain  persons  and  entities  unrelated  to Stephen  Feinberg  (the
"Unaffiliated  Entities") and with respect to which Stephen  Feinberg  possesses
sole voting but no investment control over such Unaffiliated  Entities' Series B
Notes and the Shares into which such Series B Notes are convertible.

          Pursuant to an  agreement  with the Company  dated  October 13,  1995,
Cerberus, International,  Ultra, the Funds and the Unaffiliated Entities are the
holders of warrants to purchase, respectively, 76,606, 61,901, 5,771, 44,109 and
2,886  additional  Shares.   Stephen  Feinberg  possesses  sole  voting  but  no
investment  control  over such  Unaffiliated  Entities'  2,886  warrants and the
Shares underlying such warrants.

          Pursuant to an  agreement  with the  Company  dated  August 26,  1998,
Cerberus, International,  Ultra, the Funds and the Unaffiliated Entities are the
holders of additional  warrants (the "New Warrants") to purchase,  respectively,
170,031, 265,249, 27,205, 204,038 and 13,602 additional Shares. Stephen Feinberg
possess sole voting but no investment  control over such Unaffiliated  Entities'
13,602 New Warrants and the Shares underlying such New Warrants.

          Thus, for the purposes of Reg. Section 240.13d-3,  Stephen Feinberg is
deemed to beneficially  own 21,103,754  Shares,  or 29.9% of those deemed issued
and outstanding pursuant to Reg. Section 240.13d-3.

          Except as set forth in Item 6 hereof with respect to  Amendment  No. 2
to the Securities Exchange  Agreement,  there were no transactions in Shares, or
securities  convertible into Shares, by Stephen Feinberg or any person or entity
controlled  by him or any  person or entity  for  which he  possesses  voting or
investment control over the securities thereof, in the past sixty days.

          Pursuant to an agreement  between Cerberus and GSCP, dated as of April
22, 1997 (the "GSCP  Agreement"),  GSCP has the right to receive  the  dividends
from, and the proceeds from the sale of, $8,992,159  principal amount (the "GSCP
Interest")  of the  $15,174,268  principal  amount  of  Series  B Notes  held by
Cerberus  and the Shares  into which such  Series B Notes  relating  to the GSCP
Interest are  convertible.  In addition,  as described  above,  the Unaffiliated
Entities in the aggregate have the right to receive the dividends  from, and the
proceeds from the sale of, $7,238,688 principal amount of Series B Notes and the
Shares into which such Series B Notes are  convertible  and warrants to purchase
16,488 Shares and the Shares underlying such 16,488 warrants.

<PAGE>

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
        Securities of the Issuer.

          As of April 9, 1999, the Securities  Exchange Agreement (as defined in
the Schedule 13D filed by Mr.  Feinberg as of June 30, 1998) was amended,  among
other things, to reduce the conversion rate of the Series B Notes from $3.00 per
Share to $2.00 per Share.

          As of August 20, 1998, Cerberus,  along with GSCP, FIT and FCC entered
into a Credit Agreement with the Company and CI pursuant to which Cerberus, GSCP
and FIT were to provide a senior  credit  facility  to the  Company of up to $60
million for acquisitions, working capital, letters of credit and other corporate
purposes (the "New Senior  Credit  Facility").  The New Senior  Credit  Facility
expires in February 2001 and bears interest on outstanding principal balances at
a per annum  rate  equal to prime plus  1.5%,  subject  to  increase  in certain
circumstances.  On August 26, 1998, Coram (i) received initial funding under the
New Senior Credit Facility and (ii) issued the New Warrants  described in Item 5
hereof.

          As of  April  22,  1997,  Cerberus  and  GSCP  entered  into  the GSCP
Agreement  pursuant to which  Cerberus  transferred to GSCP the right to receive
the proceeds of, including the dividends from and the proceeds from the sale of,
certain  securities  of the Company  held by  Cerberus,  including  (i) the GSCP
Interest in the Series B Notes and the Shares into which such Series B Notes are
convertible and (ii) $15,341,104  principal amount of the $69,034,968  principal
amount of the Series A Notes due 2000 of the Company held by Cerberus.

          The  Series B Notes and the Shares  issuable  upon  conversion  of the
Series B Notes have the benefit of certain  registration  rights  granted to the
holders thereof by the Company.

          Except as described herein, no contracts, arrangements, understandings
or similar  relationships  exist with respect to the  securities  of the Company
between Stephen Feinberg and any person or entity.

Item 7.   Material to be Filed as Exhibits.

          1. Amendment No. 2 to the Securities Exchange  Agreement,  dated as of
April 9, 1999, by and among Coram Healthcare Corporation,  Coram, Inc., Cerberus
Partners,  L.P.,  Goldman  Sachs Credit  Partners,  L.P.  and  Foothill  Capital
Corporation.



<PAGE>



                                    Signature

          After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.


                                            April 15, 1999


                                            /s/   Stephen    Feinberg
                                            Stephen Feinberg, in his capacity as
                                            the   managing  member   of Cerberus
                                            Associates,   L.L.C.,   the  general
                                            partner of Cerberus Partners,  L.P.,
                                            and as the  investment  manager  for
                                            each  of   Cerberus   International,
                                            Ltd.,  Ultra Cerberus Fund, Ltd. and
                                            the Funds


  Attention: Intentional misstatements or omissions of fact constitute Federal
                       criminal violations (See 18 U.S.C. 1001).

<PAGE>

                                 AMENDMENT NO. 2

                                       TO

                          SECURITIES EXCHANGE AGREEMENT

                                      among

                                   CORAM, INC.

                          CORAM HEALTHCARE CORPORATION

                                       and

                             CERBERUS PARTNERS, L.P.

                       GOLDMAN SACHS CREDIT PARTNERS L.P.

                          FOOTHILL CAPITAL CORPORATION

                                 as Noteholders

                              Dated: April 9, 1999



<PAGE>


          Amendment No. 2 (this "Amendment"),  dated as of April 9, 1999, to the
Securities  Exchange  Agreement dated as of May 6,  1998, as heretofore  amended
(said  Securities  Exchange  Agreement,  as so  amended,  being the  "Securities
Exchange Agreement",  and the terms defined therein being used herein as therein
defined  unless  otherwise  defined  herein)  among  CORAM,   INC.,  a  Delaware
corporation  (the  "Company"),   CORAM   HEALTHCARE   CORPORATION,   a  Delaware
corporation  ("Holdings"),  CERBERUS PARTNERS, L.P. ("Cerberus"),  GOLDMAN SACHS
CREDIT  PARTNERS L.P.  ("GSCP") and FOOTHILL  CAPITAL  CORPORATION  ("Foothill")
(each a "Noteholder"  and,  together with any other holders from time to time of
interests  in  the  Series  A  Notes  or  Series  B  Notes,  collectively,   the
"Noteholders").

                              W I T N E S S E T H :

          WHEREAS,  the Original  Noteholders,  the Company and Holdings entered
into  the  Securities  Exchange  Agreement,   pursuant  to  which  the  Original
Noteholders received,  among other things, Series A Notes and Series B Notes, as
the case may be, in exchange  for the  Original  Noteholders'  interests  in the
Subordinated Rollover Notes and the Warrants; and

          WHEREAS,  as of the date hereof,  the Original  Noteholders own in the
aggregate  100% of the  outstanding  principal  amount of the Series A Notes and
Series B Notes; and

          WHEREAS,  the  Series B  Notes are  convertible  into shares of Common
Stock at the option of the Noteholders; and

          WHEREAS,  the  Noteholders  have proposed and the Company and Holdings
have agreed to amend certain  provisions in the  Securities  Exchange  Agreement
relating to the calculation of the Conversion Price of the Series B Notes; and

          WHEREAS, as consideration for agreeing to such amendment,  the Company
and  Holdings  have  agreed  to  increase  the  Applicable  Series A Rate on the
Series A  Notes to 11-1/2%  per annum with effect  from the  Amendment  Date (as
hereinafter defined); and

          WHEREAS,  the  Company,  Holdings and the  Noteholders  have agreed to
amend the  Securities  Exchange  Agreement and to enter into this Amendment upon
the terms and subject to the conditions contained herein;

          NOW, THEREFORE, the parties hereto agree as follows:

          Section 1. Amendments to the Securities Exchange  Agreement.  Upon the
satisfaction  of the conditions in Section 4 of this  Amendment  relating to the
effectiveness of Section 1, the Securities  Exchange Agreement is hereby amended
as follows:

<PAGE>

          (a) Section 1 is hereby  amended by deleting the existing  definitions
of "First Adjustment Date" and "Second Adjustment Date".

          (b)  Section  1  is  hereby  amended  by  adding  the  definitions  of
"Amendment Date" and "Amendment No. 2" as follows:

               "Amendment  Date"  shall  have  the  meaning  ascribed  to  it in
     Amendment No. 2.

               "Amendment  No. 2" shall mean  Amendment No. 2 to the  Securities
     Exchange Agreement, dated April 9, 1999.

          (c)  The  definition  of  "Applicable  Series A  Rate"  set  forth  in
Section 1 of the Securities Exchange Agreement is hereby deleted in its entirety
and replaced with the following:

               "Applicable  Series A Rate" shall mean from the Effective Date to
     the Amendment Date 9-7/8% per annum and thereafter 11-1/2% per annum.

          (d)  Section 2.4(b)  of the  Securities  Exchange  Agreement is hereby
deleted in its entirety and replaced with the following:

          (b) The  Company  will  pay  interest,  accruing  from and  after  the
Effective Date, on the Series A Notes to each Noteholder quarterly in arrears on
January 15, April 15, July 15 and October 15 of each year,  commencing  July 15,
1998 (each an "Interest Payment Date") at the Applicable Series A Rate.

          (e)  Section 2 is hereby  amended by deleting  Section 2.13(a)  in its
entirety and replacing it with the following:

               2.13 Conversion of Series B Notes.  (a) Subject to the provisions
     for  adjustment   hereinafter  set  forth,  the  Series B  Notes  shall  be
     convertible, in whole or in part, at any time and from time to time, at the
     option  of the  holder  thereof  (a  "Conversion"),  up to the  outstanding
     principal  amount of Series B Notes held by such holder thereof at the time
     of such conversion into a number of fully paid and nonassessable  shares of
     Common Stock equal to the quotient  obtained by dividing (A) the  principal
     amount of the Series B  Notes to be converted by (B) the  Conversion  Price
     (as hereinafter defined).  The Conversion Price shall be $2.00 per share of
     Common Stock.  The Conversion  Price shall be subject to  adjustments  from
     time to time pursuant to Section 2.13(f) below.

               No fractional  shares shall be issued upon the  conversion of any
     Series B Notes.  All shares of Common Stock (including  fractions  thereof)
     issuable  upon  conversion of Series B  Notes by a holder  thereof shall be

<PAGE>

     aggregated for purposes of determining  whether  conversion would result in
     the  issuance  of  any  fractional  share.  If,  after  the  aforementioned
     aggregation, the conversion would result in the issuance of a fraction of a
     share of Common Stock,  Holdings  shall,  in lieu of issuing any fractional
     share,  pay the holder  otherwise  entitled to such  fraction a sum in cash
     equal  to the  Current  Market  Price  of  such  fraction  on the  date  of
     conversion.

          (a) Section 2 is hereby amended by deleting Section 2.13(f)(iv) in its
entirety and replacing it with the following:

               (iv) In case  Holdings  shall  at any  time or from  time to time
     after the  Closing  Date  declare,  order,  pay or make a dividend or other
     distribution (including,  without limitation,  any distribution of stock or
     other  securities  or  property  or rights or  warrants  to  subscribe  for
     securities  of  Holdings or any of its  Subsidiaries  by way of dividend or
     spinoff),  on its Common Stock,  other than dividends or  distributions  of
     shares of Common  Stock which are  referred to in clause (i) above and cash
     dividends paid out of retained earnings, then the Conversion Price shall be
     adjusted so that it shall equal the price determined by multiplying (A) the
     applicable Conversion Price on the day immediately prior to the record date
     fixed for the  determination  of  stockholders  entitled  to  receive  such
     dividend or distribution by (B) a fraction, the numerator of which shall be
     the Current Market Price per share of Common Stock at such record date less
     the Fair Market Value of such dividend or distribution  per share of Common
     Stock,  and the denominator of which shall be such Current Market Price per
     share of Common Stock. No adjustment  shall be made pursuant to this clause
     (iv) in connection with any transaction to which Section 2.13(g) applies.

          Section 2. Representations and Warranties of the Company and Holdings.
Each of the Company and Holdings hereby represents and warrants as to itself and
the Coram  Parties that (a) the  execution,  delivery  and  performance  of this
Amendment  have been duly  authorized by all necessary  corporate  action on the
part of such  Coram  Party  and  this  Amendment  and  the  Securities  Exchange
Agreement amended hereby each constitutes a legal,  valid and binding obligation
of such Coram Party, enforceable against it in accordance with its terms, (b) no
event has  occurred  and is  continuing  on the date hereof that  constitutes  a
Default or Event of Default  or would  constitute  a Default or Event of Default
after  giving  effect  to  this  Amendment,   and  (c) the  representations  and
warranties of Holdings and the Company  contained in Section 4 of the Securities
Exchange  Agreement  are true and correct both before and after giving effect to
this  Amendment,  except to the extent such  representations  and warranties are
stated  to  be  true  only  as  of  a  particular   date,  in  which  case  such
representations and warranties were correct on and as of such date.

          Section 1. Representations and Warranties of the Noteholders.  Each of
the Noteholders  hereby represents and warrants as to itself that the execution,
delivery and  performance  of this  Amendment  have been duly  authorized by all
necessary corporate or partnership action on the part of such Noteholder.

          Section 3. Conditions to Effectiveness. The amendments in Section 1 of
this  Amendment  shall become  effective on the date (the  "Amendment  Date") no
later than April 9, 1999 when  (a) counterparts  hereof shall have been executed
by each of the Noteholders,  Holdings and the Company,  (b) Holdings  shall have
amended  its  Stockholder  Rights  Agreement,  dated  as of June 25,  1997  with
BankBoston,  N.A., in  substantially  the form attached hereto as Exhibit A, and
(c) Holdings  and each  Subsidiary  Guarantor  shall have executed a consent and
confirmation of guaranty in the form attached hereto as Exhibit B.

          Section 4.  Effect on the  Securities  Exchange  Agreement.  Except as
amended hereby,  the Securities  Exchange Agreement and the other Note Documents
shall remain in full force and effect. Nothing in this Amendment shall be deemed
to (i) except  as set forth herein,  constitute a waiver of compliance by any of
the Coram Parties of any term, provision or condition of the Securities Exchange
Agreement or any other instrument or agreement  referred to therein or under the
Note Documents or (ii) prejudice any right or remedy that any Noteholder may now
have or may have in the  future  under  or in  connection  with  the  Securities
Exchange Agreement or any other Note Document.

          Section 5. Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate  counterparts,  each
of which when so executed  and  delivered  shall be deemed to be an original and
all of which taken together constitute one and the same agreement.

          Section 6. Governing Law. The validity, interpretation and enforcement
of this  Amendment  shall be governed by, and construed in accordance  with, the
laws of the State of New York, without regard to the conflict of laws principles
thereof.

          Section 7. Headings.  Section  headings in this Amendment are included
herein for the  convenience of reference  only and shall not constitute  part of
this Amendment for any other purpose.

          Section  8.  References.  References  herein  and  in the  other  Note
Documents to the "Securities Exchange Agreement", "this Agreement", "hereunder",
"hereof",  or  words  of  like  import  referring  to  the  Securities  Exchange
Agreement, shall mean and be a reference to the Securities Exchange Agreement as
amended hereby.



                         [Signatures on following page]



<PAGE>

          IN WITNESS  WHEREOF,  the parties hereto have caused this Amendment to
be executed and delivered by their proper and duly authorized officers as of the
date set forth above.

                                       CORAM, INC.


                                       By: ___________________________________
                                          Name:  
                                          Title: 


                                       CORAM HEALTHCARE CORPORATION


                                       By: ___________________________________
                                          Name: 
                                          Title:


                                       CERBERUS PARTNERS, L.P.


                                       By:____________________________________
                                          Name:
                                          Title:


                                      GOLDMAN SACHS CREDIT PARTNERS L.P.


                                       By: ___________________________________
                                           Name:
                                           Title:
 

                                      FOOTHILL CAPITAL CORPORATION


                                       By: ___________________________________
                                           Name:
                                           Title:


<PAGE>

                                     CONSENT

                            Dated as of April 9, 1999

          Each of the  undersigned,  in its  capacity as a  Guarantor  under the
Securities  Exchange  Agreement referred to in the foregoing  Amendment,  hereby
consents to the said Amendment and hereby  confirms and agrees that its guaranty
of the  Guaranteed  Obligations  (as  such  term  is  defined  in the  Guarantee
Agreements) is, and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects except that, upon the  effectiveness  of,
and on and  after  the  date of,  the said  Amendment,  each  reference  in each
Guarantee Agreement to "this Agreement", "hereunder", "thereunder", "thereof" or
words of like import  shall mean and be a reference to the  Securities  Exchange
Agreement as amended by said Amendment.

          This  Consent may be executed  in any number of  counterparts  each of
which,  when  executed and  delivered,  shall  constitute  an original,  but all
executed  counterparts  together shall  constitute one and the same  instrument.
Delivery  of an executed  counterpart  of a  signature  page to this  Consent by
telecopier shall be effective as delivery of a manually executed  counterpart of
this Consent.


                                         CORAM HEALTHCARE CORPORATION



                                         By:_______________________________
                                            Name:
                                            Title:

         FOR EACH OF THE SUBSIDIARY GUARANTORS LISTED ON ANNEX A HERETO



                                         By:_______________________________
                                            Name:
                                            Title:

                                         c/o Coram Healthcare Corporation
                                         1125 Seventeenth Street, Suite 1500
                                         Denver, CO 80202

<PAGE>

                                                                      ANNEX A


                                  Subsidiaries


Coram International Holdings Ltd.
         Coram Healthcare Limited

Coram, Inc.
         Coram Independent Practice Association
         Coram Physician Services, Inc.
                  Fairfax Hematology Oncology Associates, Inc.
         Coram Resource Network, Inc.
         Healthinfusion, Inc.
         H.M.S.S., Inc.
                  Coram Homecare of Texas, Inc.
                  Infusion Affiliates of Dallas, Inc.
         Medisys, Inc.
                  Coram Homecare of Illinois, Inc.
         T2 Medical, Inc.
                  Columbia Home Therapeutics, Inc.
                  Coram Healthcare Corporation of Alabama
                  Coram Healthcare Corporation of Colorado
                  Coram Healthcare Corporation of Connecticut
                  Coram Healthcare Corporation of Delaware
                  Coram Healthcare Corporation of Florida
                  Coram Healthcare Corporation of Greater D.C.
                  Coram Healthcare Corporation of Greater New York
                  Coram Healthcare Corporation of Illinois
                  Coram Healthcare Corporation of Indiana
                  Coram Healthcare Corporation of Iowa
                  Coram Healthcare Corporation of Kansas
                  Coram Healthcare Corporation of Kentucky
                  Coram Healthcare Corporation of Louisiana
                  Coram Healthcare Corporation of Michigan
                  Coram Healthcare Corporation of Minnesota
                  Coram Healthcare Corporation of Missouri
                  Coram Healthcare Corporation of Mississippi
                  Coram Healthcare Corporation of Nebraska
                  Coram Healthcare Corporation of Nevada
                  Coram Healthcare Corporation of New Hampshire
                  Coram Healthcare Corporation of New Jersey
                  Coram Healthcare Corporation of New Mexico
                  Coram Healthcare Corporation of North Carolina

<PAGE>

                  Coram Healthcare Corporation of Northern California
                  Coram Healthcare Corporation of Ohio
                  Coram Healthcare Corporation of Oklahoma
                  Coram Healthcare Corporation of Oregon
                  Coram Healthcare Corporation of Pennsylvania
                  Coram Healthcare Corporation of Rhode Island
                  Coram Healthcare Corporation of South Carolina
                  Coram Healthcare Corporation of Southern California
                  Coram Healthcare Corporation of Southern Florida
                  Coram Healthcare Corporation of Tennessee
                  Coram Healthcare Corporation of Texas
                  Coram Healthcare Corporation of Virginia
                  Coram Healthcare Corporation of Washington
                  Coram Healthcare Corporation of West Virginia
                  Coram Healthcare Corporation of Wisconsin
                  Coram Homecare of Arizona, Inc.
                  Coram Homecare of Kansas, Inc.
                  Coram Homecare of Michigan, Inc.
                  Coram Homecare of Minnesota, Inc.
                  Coram Homecare of Nebraska, Inc.
                  Coram Homecare of Northern California, Inc.
                  Coram Homecare of Ohio, Inc.
                  Coram Homecare of South Carolina, Inc.
                  Coram Homecare of South Carolina, L.L.C.
                  Coram Homecare of Virginia, Inc.
                  Coram Homecare of Wisconsin, Inc.
                  Coram Management of Hawaii, Inc.
                  Coram Service Corporation
                  Curaflex Health Services, Inc.
                           Caremark Pharmacy Services, Inc.
                           Comprehensive Pharmacy Home IV Services, Inc.
                           Coram Alternative Site Services, Inc.
                           Coram Healthcare Corporation of Massachusetts
                                    Clinical Homecare Corporation
                           Coram Healthcare Corporation of New York
                           Coram Healthcare Corporation of North Texas
                           Coram Healthcare Corporation of Utah
                           Coram Healthcare of Wyoming, L.L.C.
                           Stratogen of Rhode Island, Inc.
                  Dallas Home Therapeutics, Inc.
                  Extendacare Health Systems, Inc.
                  Intracare Holdings Corporation



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