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[CORAM HEALTHCARE LOGO]
EXHIBIT 99.1
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
SEPTEMBER 13, 2000 KURT DAVIS, 303-672-8830
CORAM HEALTHCARE RECEIVES COURT APPROVAL FOR UP TO
$40 MILLION IN DEBTOR-IN-POSSESSION FINANCING;
U.S. TRUSTEE AUTHORIZES EQUITY COMMITTEE
DENVER--SEPTEMBER 13, 2000 - Coram Healthcare Corporation (CRHEQ.OB)
and Coram, Inc., collectively referred to as Coram Healthcare or the Company,
today announced that the U.S. Bankruptcy Court for the District of Delaware
issued its final order permitting the Company to access as necessary the
Debtor-in-Possession (DIP) financing agreement previously negotiated with
Madeline LLC, an affiliate of one of the Company's principal debt holders. The
financing agreement dated August 30, 2000, provides the Company a $40 million
DIP financing line of credit.
"Coram Healthcare's operating subsidiaries continue to generate
adequate cash flow operationally, so we are meeting all of our day-to-day
obligations to patients, employees and suppliers," said Coram Healthcare
Chairman, President and Chief Executive Officer Daniel D. Crowley. "Accounts
payable are current and we are accepting and treating new and existing patients
every day. We do not foresee an immediate need to access this financing, but
this approval does provide the Company with additional financial flexibility."
As previously announced, Coram Healthcare Corporation and Coram, Inc.
filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code on August 8, 2000. The Company's election to file for Chapter 11 was solely
for the purpose of reducing and restructuring debt and maintaining compliance
with all applicable federal laws and regulations. The Company is not seeking
relief from the day-to-day operating expenses of its subsidiaries, which are not
in bankruptcy and continue to maintain normal business operations.
In a related matter, the U.S. Trustee authorized the formation of an
Equity Committee to be made up of large shareholders who wish to serve. The
committee's role will be to represent the interests of shareholders in the
bankruptcy court proceedings.
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Coram Healthcare Page 2
"Independent financial experts advised us that there were no viable
options for new financing and that the value of the Company is less than the
value of the debt," said Mr. Crowley. "Nevertheless, we welcome any and all
timely proposals from the Equity Committee that will benefit shareholders while
allowing the Company to remain compliant with federal Stark II laws beginning
January 1, 2001 and to meet its $252 million debt obligations due or redeemable
in May 2001."
The plan of reorganization submitted by Coram Healthcare to the court
on August 8, 2000, anticipates emergence from bankruptcy as a privately held
company by December 31, 2000.
Denver-based Coram Healthcare, through its subsidiaries, including all
branch offices, is a national leader in providing quality home infusion
therapies and support for clinical trials, medical product development and
medical informatics.
Note: Except for historical information, all other statements in this press
release are "forward-looking" within the meaning of the Private Securities
Litigation Reform Act of 1995. The Company's actual results may vary materially
from these forward-looking statements due to important risk factors including
the Company's lack of profitability; uncertainties associated with the outcomes
of certain pending legal proceedings; the Company's significant level of
outstanding indebtedness; the Company's need to obtain additional financing or
equity; uncertainties associated with the dilution that would occur if the
Company's existing debt holders exercise their equity conversion rights; the
Company's limited liquidity; and the Company's dependence upon the prices paid
by third party payors for the Company's services; and certain other factors.
Certain risk factors are described in greater detail in the Company's Form 10-K
Annual Report and 10-Q Quarterly Reports and 8-K Current Reports on file with
the Securities and Exchange Commission.
