========================================================================== INTEGRATED HEALTH BANKRUPTCY NEWS Issue Number 1 -------------------------------------------------------------------------- Copyright 2000 (ISSN XXXX-XXXX) February 2, 2000 -------------------------------------------------------------------------- Bankruptcy Creditors' Service, Inc., Phone 609-392-0900 FAX 609-392-0040 -------------------------------------------------------------------------- INTEGRATED HEALTH BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. Each issue is prepared by Peter A. Chapman, Editor. The subscription rate is US$45 per issue. Reproduction and redistribution of INTEGRATED HEALTH BANKRUPTCY NEWS by any means is strictly prohibited without the permission of the publisher. ========================================================================== IN THIS ISSUE ------------- [00000] HOW TO ORDER A SUBSCRIPTION TO INTEGRATED HEALTH BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF INTEGRATED HEALTH SERVICES, INC. [00002] COMPANY'S CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1999 [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING [00004] INTEGRATED HEALTH AND DEBTOR AFFILIATES CHAPTER 11 DATABASE [00005] CONSOLIDATED LIST OF THE DEBTORS' LARGEST UNSECURED CREDITORS KEY DATE CALENDAR ----------------- 02/02/00 Voluntary Petition Date 02/17/00 Deadline for filing Schedules of Assets and Liabilities 02/17/00 Deadline for filing Statement of Financial Affairs 02/17/00 Deadline for filing List of Leases and Executory Contracts 02/22/00 Deadline to provide Utility Companies with adequate assurance 04/02/00 Deadline to assume or reject leases and executory contracts 05/02/00 Deadline for removal of actions pursuant to F.R.B.P. 9027 06/01/00 Expiration of Debtors' Exclusive Period to propose a Plan 07/31/00 Expiration of Debtors' Exclusive Solicitation Period 02/01/02 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Official Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) Expiration of DIP Financing Facility -------------------------------------------------------------------------- [00000] HOW TO ORDER A SUBSCRIPTION TO INTEGRATED HEALTH BANKRUPTCY NEWS -------------------------------------------------------------------------- INTEGRATED HEALTH BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is $45 per issue. Newsletters are delivered via e-mail; invoices, transmitted with each newsletter issue, arrive by fax. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving INTEGRATED HEALTH BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com OTHER NEWSLETTERS. We currently provide similar coverage of the chapter 11 cases involving Vencor, Inc., Sun Healthcare Group, Inc., Mariner Post- Acute Network, Inc., The Loewen Group, Inc., Harnischfeger Industries, Inc., Boston Chicken, Inc., Dow Corning Corporation, Service Merchandise, Levitz Furniture, Bruno's, Inc., Montgomery Ward, APS Holding, Inc. and FoxMeyer Corporation. SPECIAL OFFER. Daily news updates tracking a rolling list of approximately 700 troubled companies in and near bankruptcy are reported in the TROUBLED COMPANY REPORTER. A sample copy of the TCR is posted at ftp://bankrupt.com/pub/Samples/TCR.txt and you can set-up a free 30-day trial subscription to the TCR at http://bankrupt.com/pub.html ========================================================================== [ ] YES! Please enter my personal subscription to INTEGRATED HEALTH BANKRUPTCY NEWS. Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- -------------------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF INTEGRATED HEALTH SERVICES, INC. -------------------------------------------------------------------------- INTEGRATED HEALTH SERVICES, INC. 10065 Red Run Blvd. Owings Mills, MD 21117 Telephone (410) 773-1000 Fax (410) 773-1044 http://www.ihs-inc.com Integrated Health Services, Inc., "offers patients a single source of quality care throughout the entire recovery process," according to Company advertising. From its beginning in 1986, IHS has grown at a remarkable pace from a single-focus healthcare provider into a coast-to-coast network of integrated services employing some 84,000 workers. From 1,500 locations in 47 states, IHS operates local and regional networks that provide post- acute care. In addition to IHS-owned services, the Company further enhances its capacity by contracting with over 5,000 community providers to offer a so-called "one-stop shopping" approach to post-acute care. The IHS post-acute network now provides integrated services in four areas: A. SUBACUTE CARE IHS subacute care is for medically stable patients who no longer need acute treatment, yet still require professional nursing, medical intervention, and/or rehabilitation. Designed to deliver superior care at costs 30% to 60% lower than acute care hospitals, IHS subacute facilities offer advanced technologies and medical care in a high-tech/high touch environment conducive to recovery. As pioneered and perfected by IHS, subacute care is practiced in Medical Specialty Units -- called MSUs -- which are typically 20-50 bed units. IHS subacute care facilities provide many of the same services given in a traditional hospital setting -- with a level of care comparable to, and in many cases exceeding, that of a hospital. Home-like settings, open areas for family visits, and coordinated care from highly trained professionals are some of the ways IHS differentiates an MSU from a general hospital setting. A high staff-to-patient ratio at an MSU means that patients benefit from frequent interaction with and accessibility to staff. The result: recovery is accelerated as patients respond more positively to therapies and treatments. An IHS subacute care facility is touted as being ideal for a short-term transitional stay, rehabilitation care prior to returning home, or even transition to permanent residence care, with treatment and therapy directed by a written plan of care structured specifically to the unique needs of each individual. B. OUTPATIENT AND REHABILITATION. IHS claims to offer the highest quality rehabilitation services in the industry. "Our integrated rehabilitation programs -- which include physical therapy, occupational therapy, speech language pathology, audiology, and other specialized therapies -- are available for our inpatient and outpatient patients. By offering rehabilitation across all our care settings, we are able to provide a comprehensive and consistent program of rehabilitation therapy throughout the patient's entire post- acute care period." IHS points to a highly trained team of rehabilitation professionals that's dedicated to helping each patient achieve his or her highest level of functioning as he or she moves from dependence to assistance to independence. IHS also provides its comprehensive, high quality rehabilitation services to other healthcare facilities and their residents. Working closely with the nursing staff, IHS' experienced, licensed therapy professionals assist in the management of residents with rehabilitation potential to enhance rehabilitative care in each client facility. IHS supports a high level of care by working with another facility's staff to meet or exceed Title 22, OBRA, and Medicare regulations, and by offering functional assessments, inservice education, documentation checks, managed care consultation, and marketing services. C. HOSPICE CARE. The IHS hospice care program offers an effective alternative to routine home care and repeat hospitalization for patients that are terminally ill. IHS provides a host of comprehensive services -- medical, psychological, social, and spiritual -- either in the patient's home or in a medical facility. Hospice care tends to patients with a limited life expectancy, whose treatment goal has been established as pain management and symptom control. Care is offered by a multidisciplinary team of doctors, nurses, social workers, spiritual counselors, therapists, aides, and trained volunteers -- all working closely with patient and family to create a comfortable and supportive environment. The goal of IHS' hospice care is to allow patients with terminal illness to live the remainder of their lives in comfort and with dignity. "We focus on the quality of life and operate with the belief that the end of life, instead of being experienced as painful and fearful, can be a time of care, comfort, enrichment, resolution, and love," IHS tells the public. D. NURSING HOME & SKILLED NURSING FACILITIES. "Quality Care with Respect for the Individual," is a tag line slogan IHS uses to promote this business segment, explaining that the need to enter a nursing facility can be an emotional and difficult decision for a prospective patient, as well as family members. So when it becomes apparent that nursing care is the best decision for all concerned, IHS offers its comforting solution -- progressive, compassionate, first rate care. For more than a decade, IHS has provided private, high-quality residential nursing facilities and skilled nursing services. Home-like settings, flexible visiting hours, and a committed professional staff are stressed at IHS nursing facilities, and physical, medical, social, and spiritual needs are carefully considered in the design of nurshing care programs. "We do our best to serve the total person -- recognizing that we care for unique individuals, each with their own distinct set of wants, needs, beliefs, and expectations," IHS says. IHS also has special Alzheimer's care units in its nursing facilities, providing separate, specialized environments where highly professional and compassionate care is provided to those who face Alzheimer's disease. According to the Company, the IHS integrated post-acute care network offers a host of advantages to patients, physicians, and payers alike. These include: (1) A single point of contact for post-acute care -- rather than several unaligned sources; (2) The ability to treat the entire disease process -- this means that IHS is better able to control costs and to ensure positive, predictable outcomes to treatment; (3) A consistent source of care for all therapy, medicines, diagnostics, and other needed services -- even as a patient moves from one care setting to another; (4) Centralized case and care management -- which reduces redundancies, lowers costs, and provides long-term program management. In addition, IHS says, it is at the forefront when it comes to managed care and other healthcare payment strategies, with one of the largest managed care utilization rates in the country, with more than 390 contracts with HMOs and other managed care organizations. Furthermore, IHS suggests, it is aggressively moving towards shared "at-risk" partnering and capitated rate arrangements with HMOs and other managed care payers. -------------------------------------------------------------------------- [00002] COMPANY'S CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1999 -------------------------------------------------------------------------- INTEGRATED HEALTH SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At September 30, 1999 (Unaudited) Assets Current Assets: Cash and cash equivalents $ 20,070,000 Temporary investments 51,236,000 Patient accounts and third-party payor settlements receivable, less allowance for doubtful receivables of $160,048,000 at September 30, 1999 582,981,000 Inventories, prepaid expenses and other current assets 78,536,000 Income taxes receivable 22,938,000 -------------- Total current assets 755,761,000 -------------- Property, plant and equipment, net 1,129,092,000 Intangible assets 1,549,477,000 Other assets 161,284,000 -------------- Total assets $3,595,614,000 ============== Liabilities and Stockholders' Equity Current Liabilities: Current maturities of long-term debt $3,332,434,000 Accounts payable and accrued expenses 375,057,000 -------------- Total current liabilities 3,707,491,000 -------------- Long-term Debt: Mortgages and other long term debt, less current maturities 203,174,000 -------------- Total long-term debt 203,174,000 -------------- Other long-term liabilities 167,118,000 Deferred gain on sale-leaseback transactions 4,070,000 Deferred income tax payable 42,023,000 Stockholders' equity: Common stock 53,000 Additional paid-in capital 1,374,269,000 Deficit (1,853,320,000) Treasury stock, at cost (49,264,000) -------------- Total stockholders' equity (528,262,000) -------------- Total liabilities and stockholders' equity $3,595,614,000 ============== -------------------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 FILING -------------------------------------------------------------------------- Integrated Health Services Files Voluntary Petition for Bankruptcy Reorganization Company to Continue Normal Operations; Receives Commitment for Up To $300 Million in DIP Financing SPARKS, Maryland -- February 2, 2000 -- Integrated Health Services, Inc. (OTC Bulletin Board: IHSV) today announced that IHS and many of its operating subsidiaries have filed voluntary petitions with the U.S. Bankruptcy Court for the District of Delaware to reorganize under Chapter 11 of the U.S. Bankruptcy Code in order to restructure the company's debt obligations. The company elected to seek court protection in order to facilitate its efforts to restructure its capital and lease obligations. In announcing today's Chapter 11 filing, company management emphasized that the filing has been organized to permit normal operations of its long term care facilities and other businesses. To ensure that the company has the working capital necessary to operate its business, it has obtained a commitment for up to $300 million in debtor- in-possession (DIP) financing with Citibank, N.A. IHS has requested the Court's permission to access the DIP financing to fund normal business operations and other cash needs during the bankruptcy proceeding. Because of significant debt repayment obligations, the company has commenced discussions with its banks and other lenders regarding the restructuring of the company's debt. The Court protection afforded by Chapter 11 will give the company an opportunity to develop a plan for reorganization with the goal of emerging from bankruptcy in a stronger financial position. The company is also in discussions with some of the owners of the long term care facilities it operates in an effort to renegotiate or cancel certain unprofitable leases. IHS is the seventh national provider to file for bankruptcy protection in the past six months. Other companies which have filed include Vencor Inc., Sun Healthcare Group Inc., Mariner Post-Acute Network Inc., Lenox Health Care Inc., Frontier Group Inc., and Newcare Health Corporation. "The dramatic impact of the implementation of the 1997 Balanced Budget Act on our revenues and cash flow severely impacted the company's ability to service our current capital structure," said Robert N. Elkins, Chairman and Chief Executive Officer. "We believe we are taking the appropriate steps to assure that we emerge from the reorganization process with a sound capital structure. During this process, we will not lose sight of our core mission of providing quality patient care." Integrated Health Services is a highly diversified health services provider, offering a broad spectrum of post-acute medical and rehabilitative services through its nationwide healthcare network. IHS's post-acute services include home respiratory services, subacute care, long term care and contract rehabilitation services. -------------------------------------------------------------------------- [00004] INTEGRATED HEALTH AND DEBTOR AFFILIATES CHAPTER 11 DATABASE -------------------------------------------------------------------------- PARENT COMPANY: Integrated Health Services, Inc. DEBTOR AFFILIATES FILING SEPARATE CHAPTER 11 PETITIONS: A-1 MEDICAL EQUIPMENT, INC. ABBA MEDICAL EQUIPMENT, INC. ACADIA HOME CARE, INC. ADAPTIVE MEDICAL, INC. ADVANCED CLINICAL TECHNOLOTY, INC. ALLIED MEDICAL, INC. ALLIED MEDICAL SUPPLY, INC. ALPINE MANOR, INC. ALWAYS MEDICAL EQUIPMENT, INC. AMERICAN MEDICAL RENTAL, INC. AMERICAN MOBILE HEALTH SYSTEMS, INC. ANDY BOYD'S INHOME MEDICAL, INC. ANDY BOYD'S INHOME MEDICAL/INHOME MEDICAL, INC. ANNISTON HEALTH & SICKROOM SUPPLIES, INC. ARBOR LIVING CENTERS OF FLORIDA, INC. ARBOR LIVING CENTERS OF TEXAS, INC. ARLINGTON MEMORIAL HOME HEALTHCARE ARLINGTON MEMORIAL HOME HEALTHCARE SERVICES BAUMANN PHARMACEUTICAL SERVICES, INC. BERKLEY MEDICAL EQUIPMENT, INC. BEST CARE MEDICAL SUPPLY, INC. BETA MEDICAL EQUIPMENT, INC. BIOCARE MEDICAL, INC. BRIARCLIFF NURSING HOME, INC. CAMBRIA MEDICAL SUPPLY, INC. CAMBRIDGE CARE CENTERS, INC. CAMBRIDGE GROUP OF INDIANA, INC. CAMBRIDGE GROUP OF TEXAS, INC. CAMDEN MEDICAL SUPPLY, INC. CANYON STATE MEDICAL SUPPLY, INC. CARE CENTERS HOLDING, INC. CARE MEDICAL SUPPLIES, INC. CARRIAGE-BY-THE-LAKE OF IHS, INC. CCA ACQUISITION I, INC. CCA OF MAINE, INC. CCA OF MIDWEST, INC. CENTENNIAL MEDICAL EQUIPMENT, INC. CENTRAL HOME CARE, INC. CENTRAL PARK LODGES, INC. CENTRAL PARK LODGES OF WEST PALM BEACH, INC. CHARLOTTE MEDICAL SUPPLY, INC. CHEROKEE HOME MEDICAL, INC. CHORUS LINE, INC. CLARA BURKE NURSING HOME, INC. CMS THERAPY SERVICES, INC. COLLEGE PARK/SCC, INC. COLLINS RENTALS, INC. COMMUNITY CARE OF AMERICA, INC. COMMUNITY CARE OF AMERICA OF ALABAMA, INC. COMMUNITY CARE OF NEBRASKA, INC. COMMUNITY HOME OXYGEN, INC. CONTOUR MEDICAL SUPPLY, INC. CORLEY HOME HEALTH CARE, INC. CP02, INC. CYNTHIANA HOME MEDICAL EQUIPMENT, INC. DANIEL MEDICAL SYSTEMS, INC. DERRY INTEGRATED HEALTH, INC. DISTINCT HOME HEALTH CARE, INC. DON PAUL RESPIRATORY SERVICES, INC. DUBLIN/SCC, INC. DUMED, INC. EAST TENNESSEE INFUSION & RESPIRATORY, INC. ECA HOLDINGS, INC. ECA PROPERTIES, INC. ELM CREEK OF IHS, INC. ENCORE HOME HEALTH CARE, INC. EPSILON HOME HEALTH CARE, INC. ESSENTIAL HOME HEALTH CARE, INC. ETA HOME HEALTH CARE, INC. EXCEL MEDICAL OF AMES, INC. EXCEL MEDICAL OF FORT DODGE, INC. EXCEL MEDICAL OF MARSHALLTON, INC. F.L.C. BENEVA NURSING PAVILION, INC. FIRELANDS OF IHS, INC. FIRST COMMUNITY CARE OF NIAGARA, INC. FIRSTCARE, INC. FISCHER MEDICAL EQUIPMENT, INC. FLORIDA LAUNDRY SERVICES, INC. FLORIDA LIFE CARE, INC. FOUR RIVERS HOME HEALTH CARE, INC. G & G MEDICAL, INC. GATE CITY MEDICAL EQUIPMENT, INC. GEORGIA MEDICAL RESOURCES, INC. GLADWIN AREA HOME CARE, INC. GLENWOOD/SCC, INC. GOLDEN -AGE INMAN, INC. GRAVOIS HEALTH CARE, INC. GREENWOOD MULTI-SPECIALTY CLINIC, INC. HAMILTON MEDICAL EQUIPMENT SERVICE, INC. HCPIII ATHENS, INC. HCPIII BREMEN, INC. HCPIII BRADENTON, INC. HCPIII BRADENTON ALF,INC. HCPIII CARROLLTON, INC. HCPIII CEDARTOWN, INC. HCPIII CUMMINGS, INC. HCPIII EASTMAN, INC. HCPIII HARTWELL, INC. HCPIII HERITAGE, INC. HCPIII HILLSBOROUGH, INC. HCPIII HILLSBOROUGH, INC. HCPIII LOUISVILLE, INC. HCP MACON, INC. HCPIII MIAMI, INC. HCPIII MOULTRIE, INC. HCPIII PINE KNOLL, INC. HCPIII ROCKMART, INC. HCPIII ROSWELL, INC. HCPIII SAVANNAH, INC. HCPIII SHAMROCK, INC. HCPIII SOCIAL CIRCLE, INC. HCPIII SOUTH FLORIDA, INC. HCPIII WOODBRIDGE, INC. HCPIII WOODSTOCK, INC. HEALTH AT HOME, INC. HEALTH CARE PROPERTIES III INCORPORATED HEALTH CARE SERVICES OF MISSISSIPPI, INC. HEALTH-MED, INC. HEALTHCARE BUSINESS SOLUTIONS, INC. HEALTHCARE CLAIMS RECOVERY, INC. HEARTLAND HOME HEALTH CARE, INC. HOLLAND MEDICAL SERVICES, INC. HOME CARE OXYGEN SERVICES, INC. HOME HEALTH SERVICES CO., INC. HOME MEDICAL SYSTEMS, INC. HOSPICE INTEGRATED HEALTH SERVICES OF DISTRICT I, IN HOSPICE INTEGRATED HEALTH SERVICES OF DISTRICT VII-B HOSPICE INTEGRATED HEALTH SERVICES OF FLORIDA, INC. HOSPICE OF INTEGRATED HEALTH SERVICES, INC. IHS ACQUISITION XV, INC. IHS ACQUICITION XVII, INC. IHS ACQUISITION XXV, INC. IHS ACQUISITION XXVII, INC. IHS ACQUISITION XXVIII, INC. IHS ACQUISITION XXXI, INC. IHS ACQUISITION XXXII, INC. IHS ACQUISITION XXXIII, INC. IHS ACQUISITION XXXIV, INC. IHS ACQUISITION NO. 100, INC. IHS ACQUISITION NO. 102, INC. IHS ACQUISITION NO. 106, INC. IHS ACQUISITION NO. 107, INC. IHS ACQUISITION NO. 108, INC. IHS ACQUISITION NO. 111, INC. IHS ACQUISITION NO. 112, INC. IHS ACQUISITION NO. 113, INC. IHS ACQUISITION NO. 119, INC. IHS ACQUISITION NO. 120, INC. IHS ACQUISITION NO. 122, INC. IHS ACQUISITION NO. 126, INC. IHS ACQUISITION NO. 130, INC. IHS ACQUISITION NO. 135, INC. IHS ACQUISITION NO. 137, INC. IHS ACQUISITION NO. 141, INC. IHS ACQUISITION NO. 142, INC. IHS ACQUISITION NO. 143, INC. IHS ACQUISITION NO. 144, INC. IHS ACQUISITION NO. 145, INC. IHS ACQUISITION NO. 147, INC. IHS ACQUISITION NO. 148, INC. IHS ACQUISITION NO. 149, INC. IHS ACQUISITION NO. 150, INC. IHS ACQUISITION NO. 151, INC. IHS ACQUISITION NO. 152, INC. IHS ACQUISITION NO. 153, INC. IHS ACQUISITION NO. 155, INC. IHS ACQUISITION NO. 156, INC. IHS ACQUISITION NO. 157, INC. IHS ACQUISITION NO. 158, INC. IHS ACQUISITION NO. 160, INC. IHS ACQUISITION NO. 161, INC. IHS ACQUISITION NO. 162, INC. IHS ACQUISITION NO. 163, INC. IHS ACQUISITION NO. 164, INC. IHS ACQUISITION NO. 165, INC. IHS ACQUISITION NO. 166, INC. IHS ACQUISITION NO. 167, INC. IHS ACQUISITION NO. 169, INC. IHS ACQUISITION NO. 172, INC. IHS ACQUISITION NO. 173, INC. IHS ACQUISITION NO. 175, INC. IHS ACQUISITION NO. 176,INC. IHS ACQUISITION NO. 178, INC. IHS AT BRANDON, INC. IHS AT CENTRAL PARK VILLAGE,INC. IHS AT HERITAGE FOREST LANE, INC. IHS AT HERITAGE MANOR CANTON, INC. IHS AT HERITAGE PLACE, INC. IHS AT HERITAGE VILLAGE, INC. IHS AT LANSING, INC. IHS DEVELPMENT -HIGHLANDS PARK, INC. IHS LAND ACQUISITION-HIGHLANDS PARK, INC. IHS OF CENTRAL FLORIDA AT ORLANDO, INC. IHS OF FLORIDA NO. 1, INC. IHS OF FLORIDA NO. 2, INC. IHS OF FLORIDA NO. 3, INC. IHS OF FLORIDA NO. 4, INC. IHS OF FLORIDA NO. 5, INC. IHS OF FLORIDA NO. 6, INC. IHS OF FLORIDA NO. 7, INC. IHS OF FLORIDA NO. 8, INC. IHS OF FLORIDA NO. 9, INC. IHS OF FLORIDA NO. 10, INC. IHS OF FLORIDA NO. 11, INC. IHS OF FLORIDA NO. 12, INC. IHS OF FLORIDA NO. 13, INC. IHS OF FLORIDA NO. 14, INC. IHS OF LAKELAND AT OAKBRIDGE, INC. IHS OF OAKWOOD AT ARLINGTON, INC. IHS OF SUNCOAST, INC. INFUSION SERVICES, INC. INMAN HEALTHCARE, INC. INMAN NURSING FACILITIES, INC. INTEGRATED-BALLARD, INC. INTEGRATED HEALTH GROUP LIMITED PARTNERSHIP INTEGRATED HEALTH OF LOCUST VALLEY ROAD, INC. INTEGRATED HEALTH SERVICES AT ALEXANDRIA, INC. INTEGRATED HEALTH SERVICES AT BIG SAIL, INC. INTEGRATED HEALTH SERVICES AT BLUE RIDGE MANOR, INC. INTEGRATED HEALTH SERVICES AT CADIZ, INC. INTEGRATED HEALTH SERVICES AT CHEYENNE, INC. INTEGRATED HEALTH SERVICES AT COLUMBUS, INC. INTEGRATED HEALTH SERVICES AT DAYTON, INC. INTEGRATED HEALTH SERVICES AT DRIFTWOOD, INC. INTEGRATED HEALTH SERVICES AT EASTERN MASSACHUSETTS, INTEGRATED HEALTH SERVICES AT FRANKLIN, INC. INTEGRATED HEALTH SERVICES AT GRANDVIEW CARE CENTER, INTEGRATED HEALTH SERVICES AT GREAT BEND, INC. INTEGRATED HEALTH SERVICES AT HERITAGE OAKS, INC. INTEGRATED HEALTH SERVICES AT HIGHLANDS PARK, INC. INTEGRATED HEALTH SERVICES AT HOPEDALE, INC. INTEGRATED HEALTH SERVICES AT HOUSTON, INC. INTEGRATED HEALTH SERVICES AT INDIAN CREEK, INC. INTEGRATED HEALTH SERVICES AT JEFFERSON HOSPITAL, IN INTEGRATED HEALTH SERVICES AT JULIANA, INC. INTEGRATED HEALTH SERVICES AT KENT, INC. INTEGRATED HEALTH SERVICES AT NEWARK, INC. INTEGRATED HEALTH SERVICES AT ORMOND BEACH, INC. INTEGRATED HEALTH SERVICES AT PARK REGENCY, INC. INTEGRATED HEALTH SERVICES AT PENN, INC. INTEGRATED HEALTH SERVICES AT SILVERCREST, INC. INTEGRATED HEALTH SERVICES AT SOMERSET VALLEY, INC. INTEGRATED HEALTH SERVICES AT SOUTHERN HILLS, INC. INTEGRATED HEALTH SERVICES AT STEUBENVILLE, INC. INTEGRATED HEALTH SERVICES AT SYCAMORE CREEK, INC. INTEGRATED HEALTH SERVICES AT THREE RIVERS, INC. INTEGRATED HEALTH SERVICES AT TREYBURN, INC. INTEGRATED HEALTH SERVICES AT TYLER, INC. INTEGRATED HEALTH SERVICES AT WINTER HAVEN, INC. INTEGRATED HEALTH SERVICES FINANCIAL HOLDINGS, INC. INTEGRATED HEALTH SERVICES HOLDINGS, INC. INTEGRATED HEALTH SERVICES OF ARCADIA, INC. INTEGRATED HEALTH SERVICES OF ATHENS, INC. INTEGRATED HEALTH SERVICES OF BRENTWOOD, INC. INTEGRATED HEALTH SERVICES OF CALIFORNIA, INC. INTEGRATED HEALTH SERVICES OF CLIFF MANOR, INC. INTEGRATED HEALTH SERVICES OF COLORADO AT CHERRY CRE INTEGRATED HEALTH SERVICES OF EAGLE CREEK, INC. INTEGRATED HEALTH SERVICES OF FLORIDA AT HOLLYWOOD H INTEGRATED HEALTH SERVICES OF GREEN BRIAR, INC. INTEGRATED HEALTH SERVICES OF HERITAGE MANOR, INC. INTEGRATED HEALTH SERVICES OF HICKORY CREEK, INC. INTEGRATED HEALTH SERVICES OF INDIAN HILLS, INC. INTEGRATED HEALTH SERVICES OF JACKSONVILLE, INC. INTEGRATED HEALTH SERVICES OF KANSAS CITY AT NORTH O INTEGRATED HEALTH SERVICES OF LESTER, INC. INTEGRATED HEALTH SERVICES OF MELISSA, INC. INTEGRATED HEALTH SERVICES OF ORANGE PARK, INC. INTEGRATED HEALTH SERVICES OF RIVERBEND, INC. INTEGRATED HEALTH SERVICES OF SCENIC HILLS, INC. INTEGRATED HEALTH SERVICES OF SUNSET, INC. INTEGRATED OF GARDEN TERRACE, INC. INTENSIVE HOME CARE NURSES, INC. INTENSIVE HOME CARE SERVICES, INC. INTERNATIONAL MEDICAL SERVICES & SUPPLIES, INC. INTERNATIONAL THERAPEUTIC SERVICES, INC. IOTA MEDICAL EQUIPMENT, INC. KAPPA MEDICAL EQUIPMENT, INC. LAMBDA MEDICAL EQUIPMENT, INC. LAMS, INC. LAWRENCE MEDICAL EQUIPMENT, INC. LEXINGTON PRIMARY CARE, INC. LIBERTY HOME HEALTH CARE, INC. LOVEJOY MEDICAL, INC. LTC MEDICAL LABORATORIES, INC. LULING/SCC, INC. MACON/SCC, INC. MAGNOLIA GROUP, INC. MAGNOLIA MANOR - COLUMBIA, INC. MAGNOLIA MANOR - GREENVILLE, INC. IHS ACQUISITION NO. 154, INC. MAGNOLIA MANOR - GREENWOOD, INC. MAGNOLIA MANOR -INMAN, INC. MAGNOLIA MANOR -MONCKS CORNER, INC. MAGNOLIA MANOR ROCK HILL, INC. MAGNOLIA MANOR - SPARTANBURG, INC. MAGNOLIA PLACE, INC. MAGNOLIA PLACE-GREENVILLE, INC. MAINE HEAD TRAUMA CENTER, INC. MAJOR MEDICAL SUPPLY, INC. MARIETTA/SCC, INC. MEDCO PROFESSIONAL SERVICES CORP MEDIC-AIRE MEDICAL EQUIPMENT, INC. MEDICARE RENTAL SUPPLY, INC. MEDICAL ELECTRO-THERAPEUTICS, INC. MEDICAL RENTAL SUPPLY, INC. MICHIGAN MEDICAL SUPPLY, INC. MIDWEST REGIONAL REHABILITATION CENTER, INC. MOBILE RAY OF NEW ORLEANS, INC. MOUNTAIN VIEW NURSING CENTER, INC. NATIONAL INSTITUTIONAL PHARMACY SERVICES, INC. NATIONAL MEDICAL EQUIPMENT CENTERS, INC. NEUMANN'S HOME MEDICAL EQUIPMENT, INC. NEW SOUTHWOOD ASSOCIATES, INC. NIGHTINGALE HOME HEALTH CARE, INC. NORTH CENTRAL WASHINGTON RESPIRATORY CARE SERVICES, INC. NORTH FLORIDA PAIN INSTITUTE, INC. NORTHEAST MEDICAL EQUIPMENT, INC. NORTHWEST HOME MEDICAL, INC. OMEGA MEDICAL EQUIPMENT, INC. OMICRON MEDICAL EQUIPMENT OXYGEN OF OKLAHOMA, INC. OXYGEN PLUS, INC. OXYGEN PLUS MEDICAL EQUIPMENT, INC. OXYGEN THERAPY ASSOCIATES, INC. PERRY/RMC REAL ESTATE, INC. PETERSON'S HOME CARE, INC. PHI MEDICAL EQUIPMENT, INC. PHYSICIAN'S FORMULARY SERVICES, INC. PIONEER MEDICAL SERVICES, INC. POLK CITY PHARMACY, INC. PORTABLE X-RAY LABS, INC. PREMIER MEDICAL, INC. PREMIERE ASSOCIATES, INC. PREMIERE ASSOCIATES HEALTHCARE SERVICES, INC. PREMIERE ASSOCIATES MANAGEMENT COMPANY, INC. PRIMARY HOME HEALTH CARE, INC. PRINCIPAL MEDICAL EQUIPMENT, INC. PROFESSIONAL BREATHING ASSOCIATES, INC. PROFESSIONAL MANAGEMENT RESOURCES, INC. PROFESSIONAL RESPIRATORY HOME HEALTHCARE, INC. PSI HEALTH CARE, INC. PULMO-DOSE, INC. PULMONARY HOME CARE, INC. QUALITY CARE OF COLUMBUS, INC. QUALITY CARE OF LYONS, INC. QUALITY HOME HEALTH CARE, INC. R.C.P.S., INC. R N HOME CARE MEDICAL EQUIPMENT COMPANY, INC. RCG INFOMRATION SERVICES CORPORATION RCI MEDICAL CORPORATION RCL SUPPORT SERVICES, INC. REGENCY MEDICAL EQUIPMENT, INC. REHABILITATIVE ASSOCIATES, INC. REHABWORKS, INC. RESP-A-CARE, INC. RESPACARE MEDICAL EQUIPMENT, INC. RESPIRATORY MEDICAL EQUIPMENT OF GEORGIA, INC. RESPITECH HOME HEALTH CARE, INC. RESPONSIVE HOME HEALTH CARE, INC. REST HAVEN NURSING CENTERS, INC. RHEMA, INC. RHO MEDICAL EQUIPMENT, INC. RIKAD PROPERTIES, INC. RITT MEDICAL GROUP, INC. ROSWELL HOME MEDICAL, INC. ROTECH EMPLOYEE BENEFITS CORPORATION ROTECH HOME MEDICAL CARE, INC. ROTECH MEDICAL CORPORATION ROTECH OXYGEN AND MEDICAL EQUIPMENT, INC. ROTH MEDICAL, INC. ROTHERT'S HOSPITAL EQUIPMENT, INC. RWI THERAPY TECHNOLOGIES CORPORATION SAMARITAN CARE, INC. (IL) SAMARITAN CARE, INC. (MI) SAMPSON CONVALESCENT MEDICAL SUPPLY, INC. SELECT HOME HEALTH CARE, INC. SHC OF ARIZONA, L.C. SHC SERVICES OF ARIZONA, L.C. SHCM BONTERRA, INC. SHCM HIALEAH, INC. SHCM HOLDINGS, INC. SHCM PARKVIEW, INC. SIGMA MEDICAL EQUIPMENT, INC. SIGNATURE HOME CARE GROUP, INC. SIGNATURE HOME CARE, INC. SIGNATURE HOME CARE OF ARLINGTON, INC. SIGNATURE HOME CARE OF KANSAS, INC. SIGNATURE HOME CARE OF NEW JERSEY, INC. SIGNATURE HOME CARE OF NEW JERSEY GENERAL PARTNERSHIP SOUTHEASTERN HOME HEALTH, INC. SOUTHERN IV THERAPY, INC. SOUTHERN MEDICAL, INC. SOUTHWOOD HOLDINGS, INC. SPRING CREEK OF IHS, INC. STAT MEDICAL EQUIPMENT, INC. SUCCESSCARE, INC. SUN MEDICAL SUPPLY, INC. SUNSHINE HOME HEALTH CARE, INC.. SYMPHONY ANCILLARY SERVICES, INC. SYMPHONY CONSULTING SERVICES, INC. SYMPHONY DIAGNOSTIC SERVICES, INC. SYMPHONY DIAGNOSTIC SERVICES NO. 1, INC. SYMPHONY DIAGNOSTIC SERVICES NO. 2, INC. SYMPHONY HEALTH SERVICES, INC. SYMPHONY PHARMACY SERVICES, INC. SYMPHONY REHAB DYNAMICS, INC. SYMPHONY REHABILITATION SERVICES, INC. SYMPHONY REHABILITATION SERVICES NO. 1, INC. SYMPHONY REHABILITATION SERVICES NO. 2, INC. SYMPHONY REHABILITATION SERVICES NO. 3, INC. SYMPHONY REHABILITATION SERVICES NO. 4, INC SYMPHONY RESPIRATORY SERVICES, INC. SYMPHONY RESTORATIVE THERAPY LIMITED TEXAS LPC, INC. THE KILROY COMPANY THE TOWNE PHARMACY, INC. THERAPY SOURCE, INC. THETA HOME HEALTH CARE, INC. TUPELO HOME HEALTH, INC. UPSILON MEDICAL EQUIPMENT, INC. VALLEY MEDICAL, INC. VALUE CARE, INC. VITALCARE HEALTH SERVICES, INC. VITALCARE OF AMERICA, INC. VITALCARE OF PENNSYLVANIA, INC. VITALCARE OF TEXAS, INC. VTA MANAGEMENT SERVICES, INC. W.S.T. CARE, INC. WESTERN NORTH CAROLINA HOME HEALTH CARE, INC. WESTGATE MANAGEMENT COMPANY OF TARBORO WHITE'S MEDICAL RENTALS, INC. WICHITA MEDICAL CARE, INC. WOFFORD PHARMACEUTICAL SERVICES, INC. WOODRUFF HEALTHCARE, INC. WOODBRIDGE CONVALESCENT CENTER, INC. ZETA HOME HEALTH CARE, INC. Bankruptcy Case Nos.: 00-00389 through 00-00825, inclusive Petition Date: February 2, 2000 Court: United States Bankruptcy Court District of Delaware Marine Midland Plaza Building 824 Market Street Wilmington, Delaware 19801 Judge: Not Yet Assigned Circuit: Third Debtors' Lead Counsel: Michael J. Crames, Esq. Arthur Steinberg, Esq. Mark D. Rosenberg, Esq. Kaye, Scholer, Fierman, Hays & Handler, LLP 425 Park Avenue New York, NY 10022 Telephone (212) 836-8000 Fax (212) 836-8689 Debtors' Local Counsel: Robert S. Brady, Esq. Young, Conaway, Stargatt & Taylor, LLP 11th Floor, Rodney Square North P.O. Box 391 Wilmington, DE 19899 Telephone (302) 571-5600 Fax (302) 571-1253 Debtors' Special Counsel: Charles P. Greenman, Esq. Lee W. Stremba, Esq. Parker Chapin Flattau & Klimpl, LLP 1211 Avenue of the Americas New York, NY 10036 Telephone (212) 704-6000 Fax (212) 704-6288 Debtors' Financial Advisor: Warburg Dillon Read, LLP 299 Park Avenue New York, NY 10171 Debtors' Accountants: KPMG LLP 111 South Calvert Street Baltimore, MD 21202 U.S. Trustee: John D. "Jack" McLaughlin, Esq. Office of the United States Trustee Curtis Center, 9th Floor West 901 Walnut Street Philadelphia, PA 19106 (215) 597-4411 Reported Financial Condition as of September 30, 1999: Total Consolidated Assets: $3,595,614,000 Total Consolidated Liabilities $4,123,876,000 -------------------------------------------------------------------------- [00005] CONSOLIDATED LIST OF THE DEBTORS' LARGEST UNSECURED CREDITORS -------------------------------------------------------------------------- 20 Largest Holders of Bank Debt Claims under the Senior Credit Facility Van Kampen $235,554,375 Oaktree Capital 146,737,657 Bank of America 109,162,500 Merrill Lynch Asset Management 91,765,749 Deutche Bank, A.G. 89,187,187 Apaloosa Management 79,850,110 First Union National Bank of North Carolina 63,868,750 TCW - KZH Crescent 60,371,691 Sun Trust Bank, N.A. 59,625,000 Citibank, N.A. 55,998,906 Toronto Dominion Bank 55,937,500 Eaton Vance -- Deeprock 54,037,500 Credit Lyonnais, New York Branch 52,362,187 General Electric Capital Corporation 52,362,187 Societe Generale 49,720,000 Transamerica Commercial Finance/Aegon USA 49,125,000 Bank of Nova Scotia 44,625,000 AmSouth Bank 41,934,375 Fleet National Bank/Bank Boston 41,000,000 PIMCO - Captiva III Finance 40,277,195 20 Largest Holders of Bond Debt Claims Capital Research & Management $375,125,000 Putnam Investment Management 77,036,000 Standish, Ayer & Wood, Inc., 55,075,000 Smith Barney Asset Management 45,090,000 Fidelity Management & Research 42,230,000 Wellington Management Company 30,500,000 Lord, Abbett & Company 20,250,000 Prudential Insurance Company 14,800,000 Offitbank 14,150,000 John Hancock Advisors, Inc. 12,337,000 Lutheran Brotherhood 11,200,000 Manufacturers Life Insurance 10,500,000 Oppenheimerfunds, Inc. 10,290,000 Hamblin Watsa Investment Counselors 10,000,000 General Motors Investment Management 9,000,000 Boston Partners Asset Management 7,280,000 Provident Investment Management 7,000,000 MassMutual, The Blue Chip Company 6,900,000 Adams Express Company 6,675,000 GE Financial Assurance/First Colony Life 5,000,000 CS First Boston Unknown Largest Non-Institutional Claim Holders Health Care Financing Administration $140,000,000 Pharmerica 19,955,850 *** End of Issue No. 1 ***