Res 1993-185 - Laserfiche WebLink

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bi- The stabilization program consis~ed of (l) sale/disposition of non-core assets and reduction of obligations; (2) expense reductions; (3) capital infusion from Greenery Rehabilitation Group, Inc. ("Greenery"); (4) reduction of lease obligations; (S) sustaining existing financing; (6) merger discussions with HealthVest; and (7) merger discussions with Commu.'Ü t y Psychiatric Centers, Inc. Because of Healthcare's inability to generate sufficient cash flow to fund current liabilities, Healthcare and HIIAA, Inc. commenced voluntary reorganization cases under Chapter 11 of the Bankrugtcy Code on November 4, 1991, under Case Nos. 91-13741-LK and 91-l3742-LK, respectively, with the -~ United States Bankruptcy Court for the Western District of Texas, Austin Division. Soon thereafter, the affiliated companies and subsidiaries began to also seek protection under Chapter 11 of the Bankruptcy Code. On December 4, 1991, Healthcare Financial Services, Inc. ("HFS") commenced a voluntary reorganization case under Chapter 11 of the Bankruptcy Code, under Case No. 91-14081-LIC with the Bankruptcy Court. On December 27, 1991, HMC Hawai~, Inc. commenced a voluntary reorganization under Case No. 91-14293-LK with the Bankruptcy Court. On January. 31, 1992, Healthcare Brown Management Co. ("Brown Management") and Hawaii Health Services, Inc. commenced voluntary reorganization cases under Chapter 11 of the Bankruptcy Code, under Case No. 92-10392-LK and 92-10393-LK, respectively, with the Bankruptcy Court. - On March 3, 1992, the Bankruptcy Court ordered the joint administration of all these Chapter 11 cases under Case No. 91-l3741-LK. On July 20, 1992, the remaining fifty-seven (57) of Heal thcare' s subsidiaries, including Debtor, The Brown Schools of SaniMarcos, Inc., filed for protection under either Chapter 7 or 11 of the Bankruptcy Code. Healthcare believes these subsidiary filings were generally unnecessary. At the time the filings occurred, Debtor's Board of Directors was controlled by a subsidiary of Greenery Rehab i 1 ita ti on Group, Inc. All of these cases were filed in the Western District of Texas, Austin Division. By order entered August 10, 1992, this case is being jointly administered with all other related Chapter II's under Case No. 91-13741-LK. D. Results of Operations as a Debtor-in-Possession - The Debtor filed its Chapter 11 petition on July 20, 1992. The Debtor has , attached its comparable statement of operations reflecting its historical performance and performance for fiscal year 1993 (July 1992 - June 1993) as Exhibit "B". Data for 1993 is preliminary and has not been audited. E. Estimated Future Income and Expenses Attached hereto as Exhibit "C" is the Debtor's three (3) year projection of income and expenses under the Plan. The projection describes the Debtor's expected revenues, costs and expenses and other changes in cash. - 8 - a-ZeISS I I