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EXHIBIT 99.2
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION, CONTACT:
AUGUST 9, 2000 KURT DAVIS, 303-672-8830
CORAM RECEIVES APPROVAL OF FIRST DAY MOTIONS TO MAINTAIN
NORMAL BUSINESS OPERATIONS
Company Wages, Salaries and Benefits, Payments to Vendors,
and Access to New Credit Facility Among Motions Approved by the Court
DENVER-AUGUST 9, 2000 - Coram Healthcare Corporation and Coram, Inc., ("Coram
Healthcare", OTCBB: CRHE) today announced that the U.S. Bankruptcy Court for the
District of Delaware approved the Company's key first day motions in connection
with its reorganization, ensuring that the Company's quality patient care can
continue uninterrupted.
As previously announced, Coram Healthcare Corporation and Coram, Inc.,
filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code on August
8, 2000. The Company elected to seek Court protection in order to facilitate
restructuring of its debt obligations while continuing to maintain normal
business operations in all of the Company's subsidiaries and their branches.
During the subsequent Court hearing that occurred today, Judge Mary F. Walrath
approved Coram's key first day motions.
The motions, among other things, provide for the continuation of normal
business operations in all of the Company's subsidiaries and their branches,
including the following:
- Continuing payment of all employee wages, salaries and
benefits;
- Continuing payment of all vendors in the ordinary course of
business for both pre- and post-petition expenses;
- Access to a debtor-in-possession ("DIP") credit facility, if
needed;
- Continuing use of all Company bank accounts for normal
business operations.
Operationally, the Company's subsidiaries are currently generating
adequate cash flow to meet all of their day-to-day obligations to patients,
employees and suppliers. The Company is not having difficulty paying its normal
business expenses, and accounts payable are current. The Company is not seeking
relief from those expenses. The Company's election to file for Chapter 11 is
solely for the purpose of reducing and restructuring debt and maintaining
compliance with all applicable federal laws and regulations.
-more-
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CORAM HEALTHCARE
Press Release
Page 2
"The Court's approval of our first day motions to continue normal
business operations indicates that the process is moving smoothly, as expected,
and more importantly, represents the beginning of the expeditious resolution of
our balance sheet issues," said Coram Healthcare chairman, president and chief
executive officer Dan Crowley.
The plan of reorganization submitted by Coram Healthcare to the court
on August 8, 2000, anticipates emergence from bankruptcy as a privately held
company before the end of the fourth quarter of 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 Report on file with the Securities and Exchange
Commission.
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[Coram Healthcare Corporation Letterhead]
August 11, 2000
Via EDGAR
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.
Re: Coram Healthcare Corporation, Commission File Number 1-11343
Form 8-K
Ladies and Gentlemen:
On behalf of Coram Healthcare Corporation (the "Company"), we hereby
file a Form 8-K Current Report dated August 11, 2000.
If you have any questions or require any further information regarding
the foregoing, please call the undersigned at the telephone number set forth
above.
Very truly yours,
/s/ Scott T. Larson
Scott T. Larson
Senior Vice President
and General Counsel
