EXHIBIT 99.1
NEWS
(FRB LOGO)
RE: RESPONSE ONCOLOGY, INC.
1805 MORIAH WOODS BLVD.
MEMPHIS, TN 38117
(901) 761-7000
OTCBB: ROIXE
FOR YOUR INFORMATION:
AT THE COMPANY: AT FRB | WEBER SHANDWICK
Charles E. Sweet Marilyn Windsor Leslie Loyet Cynthia Martin
President & Chief Executive Officer General Information Analysts/Investors Media Inquiries
(800) 323-3719 (702) 515-1260 (312) 640-6672 (312) 640-6741
csweet@responseoncology.com mwindsor@webershandwick.com lloyet@webershandwick.com clmartin@webershandwick.com
FOR IMMEDIATE RELEASE
FRIDAY, MAY 10, 2002
RESPONSE ONCOLOGY FILES PLAN, COURT APPROVES DISCLOSURE STATEMENT
MEMPHIS, TN--MAY 10, 2002--RESPONSE ONCOLOGY, INC., (OTCBB: ROIXE) and its
affiliated entities (collectively "ROI" or the "Company"), today announced that
the United States Bankruptcy Court for the Western District of Tennessee,
Western Division (the "Court") approved a disclosure statement (the "Disclosure
Statement") filed in connection with the Joint Plan (the "Plan") filed by ROI
and AmSouth Bank, as agent for itself, Bank of America, N.A. and Union Planters
Bank, N.A. (the "Lenders") on Friday, May 3, 2002.
Under the Plan, originally filed April 12, 2002, and amended April 19, 2002,
ROI's outstanding common stock, preferred stock, options and warrants will be
cancelled and current shareholders and warrantholders will not receive any
consideration.
The Company has liquidated substantially all of its assets and will complete the
process of liquidating all of its assets this summer. Under the Plan, the
Lenders, whose outstanding secured claim was allowed in the amount of
$29,545,087.31 by Court order dated October 26, 2001, will be paid all proceeds
from the liquidation, except for amounts to be paid on account of allowed
administrative and priority claims (estimated to be approximately $3,500,000),
and $250,000, which will be distributed to general unsecured creditors. The
liquidation of ROI's assets will not return to the Lenders or general unsecured
creditors the full amount of their claims.
The Court has set a hearing on the confirmation of the Plan for June 14, 2002 at
11:00 a.m. CDT. If the Plan is confirmed, upon completion of the liquidation of
all ROI's assets and distribution of those proceeds, the Company will be
dissolved.
Creditors and other parties in interest wishing to obtain a copy of the Plan and
Disclosure Statement may go to www.wallerlaw.com. In addition, the Plan, as well
as the Disclosure Statement, are on file with the Court and are available for
review and copying during the Court's normal business hours.
MORE
RESPONSE ONCOLOGY, INC.
ADD 1
On April 24, 2002, pursuant to the Court's order extending permission for ROI to
use cash collateral and to make certain bonus and severance payments (the "Cash
Collateral Order"), Anthony LaMacchia, ROI's chief executive officer and a
member of ROI's board of directors (the "Board") resigned, along with all other
then-existing members of the Board. Charles E. Sweet replaced Mr. LaMacchia as
CEO and also serves as chairman of the Board. Peter A. Stark, ROI's chief
financial officer, and James A. Skinner filled the other Board positions,
pursuant to the Court's Cash Collateral Order.
The Board has directed ROI to complete the audit of its 2001 consolidated
financial statements. Subject to the timing of the completion of the audit, ROI
will file its Form 10-K as of and for the year ended December 31, 2001, and its
first quarter Form 10-Q for the quarter ended March 31, 2002, with the
Securities and Exchange Commission ("SEC"). The Company anticipates that these
filings will be submitted within the next 45-60 days. Next week, the Company
will also be filing a Form 8-K with the SEC that contains this press release and
its February 2002 unaudited monthly operating report.
Management has included herein certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Act of 1934, as amended. When used, statements which are
not historical in nature including the words "anticipate," "estimate," "should,"
"expect," "believe," "intend," and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are, by their nature,
subject to known and unknown risks and uncertainties. Forward-looking statements
include statements about the Plan and its confirmation, the timing of completion
of ROI's liquidation, the timing of completion of ROI's audit and the filing of
periodic reports with the SEC. These statements are based on current
expectations and the current status of ROI's financial condition and filings
with the Court. They involve a number of risks and uncertainties that are
difficult to predict, including, but not limited to: the ability of ROI to
liquidate its assets under the terms of the Plan as filed with the Court;
confirmation of the Plan by the Court and approval by the creditors; the ability
of ROI's independent auditors to complete their audit of ROI's financial
statements for the year ended December 31, 2001 and review of ROI's financial
statements for the quarter ended March 31, 2002 based on information available
to them; and the ability of current management of ROI to complete the filings of
its Form 10-K and the Form 10-Q described herein based on information available
to them. Actual results could differ materially from those expressed or implied
in the forward-looking statements. Important assumptions and other important
factors, risks, and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements included in this release
are detailed from time to time in other press releases and reports filed by ROI
with the SEC, including Forms 8-K, 10-Q and 10-K. ROI assumes no obligation to
publicly release any revisions to these forward-looking statements, which may be
made to reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
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