DENVER, July 24, 2000 (PRIMEZONE) -- Coram Healthcare Corporation (OTCBB:CRHE) today announced that Stephen A. Feinberg has resigned from its Board of Directors effective today.
Mr. Feinberg is the managing member of Cerberus Associates L.L.C., which is the general partner of Cerberus Partners, L.P., affiliates of which hold nearly 45 percent of Coram's principal debt instruments. He is stepping down voluntarily and without any disagreements to avoid potential conflicts of interest as Coram undertakes previously announced initiatives, which are likely to involve restructuring of the company's balance sheet.
Mr. Feinberg was a member of Coram's board since June 1998. "I have full confidence in Coram's management and board and concur that a restructuring of the debt is appropriate at this time," said Mr. Feinberg. "I am stepping aside to facilitate this and to eliminate any potential conflicts of interest during the process."
"Mr. Feinberg has been a decisive, insightful and positive member of our Board, and I want to thank him for his many contributions," said Daniel D. Crowley, Chairman, President and Chief Executive Officer of Coram. "He has always demonstrated the highest level of integrity, and we have accepted his resignation with respect and appreciation for the spirit in which it was tendered."
Mr. Crowley added: "We currently expect that the Board of Directors will appoint a special committee of four independent directors to consider alternatives available to the company for maintaining compliance with Stark II and to make key decisions related to balance sheet restructuring."
Denver-based Coram Healthcare, through its subsidiaries, 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, but not limited to, 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 debtholders 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, as amended, Form 10-Q Quarterly Reports, and Form 8-K Current Reports on file with the Securities and Exchange Commission.