EDGEWATER, N.J., Dec. 22, 1995 -- href="chap11.nature.html">Nature's Elements
Holding Corporation announced today that Bernard Kossar has
resigned
as Chairman of the Board and Chief Executive Officer. He will
remain a director of the Company. Mr. Kossar stated that "I have
decided to retire from my more active involvement. I look forward
to continuing my contribution to the Company as a director." Jan
Stuart, the Company's President and Chief Operating officer,
indicated that he was pleased that the Company would continue to
benefit from Mr. Kossar's advice as a director.
Mr. Stuart also noted that while sales for the Christmas season
to date have not been at the level anticipated by management, the
Company was making progress in refining its operations as it
conducts business under the protection of Chapter 11. Mr. Stuart
stated that "we are pleased with the initial response of our
customers to the introduction of vitamins to our product-mix and we
will continue to evaluate the performance of the 37 stores currently
being operated."
/CONTACT: Jan Stuart, President of Nature's Elements Holding
Corporation, 201-945-2640/
DOWNEY, Calif., Dec. 22, 1995 -- AHI Healthcare
Systems,
Inc. (Nasdaq-NNM: AHIS) announced that it was served today with
complaints against the Company and certain of its officers and
directors (including directors who sold stock) in the Central
District of California of the United States District Court.
The complaints allege that the Company, among other things,
artificially inflated the price of its stock by misleading
securities analysts and by failing to disclose in its prospectus for
its initial public offering difficulties with the Lakewood Health
Plan acquisition. The risks associated with development costs and
consummation of acquisitions, including the Lakewood acquisition,
were set forth by the Company in the prospectus, and the Company
believes the allegations to be without merit.
The Company also announced it determined today that, as a result
of the larger than expected losses previously announced, AHI
anticipates it will be in technical default under one of the
financial covenants of its bank loan agreement. Such covenant
requires that the Company maintain a cash flow-to-funded debt ratio
of 1.25 to 1.00. Currently, the Company has no outstanding
indebtedness under the loan agreement, although it has a $2.9
million letter of credit outstanding thereunder. The Company is
negotiating with the bank to amend or waive this covenant. Until
and unless such waiver or amendment is obtained, the Company will
not be able to borrow under the loan agreement. The Company does
not anticipate it will need any such borrowings to fund its existing
business operations.
AHI Healthcare Systems, Inc. integrates primary care physicians
and specialists into comprehensive local managed health care
delivery networks, providing affiliated physicians with access to
managed care contracts and single-source access to health
maintenance organizations and other payors.
/CONTACT: H.R. Brereton Barlow, CFO of AHI Healthcare Systems,
310-803-0100; or Gary S. Maier or Cecilia Wilkinson, of Pondel
Parsons &
Wilkinson, 310-207-9300/