DRAFT
2/1/2000 12:15 PM
FOR IMMEDIATE RELEASE:
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Contact: Robert N. Elkins, M.D.
Chairman & CEO
Marc B. Levin
Executive Vice President
Integrated Health Services, Inc.
(410)773-1000
Available on the Internet: http://www.Ihs.com
INTEGRATED HEALTH SERVICES RECEIVES APPROVAL OF FIRST DAY ORDERS IN
CONNECTION WITH RESTRUCTURING UNDER CHAPTER 11
Sparks, MD, February 3, 2000 - Integrated Health Services, Inc. (OTC Bulletin
Board: IHSV) today announced that the United States Bankruptcy Court for the
District of Delaware entered first day orders granting authority to the Company
and its subsidiaries to pay pre-petition and post-petition employee wages,
salaries, benefits and other employee obligations. The Court also approved
orders granting authority, among other things, to pay pre-petition claims on
certain critical vendors and patient obligations. Until approval of its plan of
reorganization, the Company intends to pay post-petition claims of all other
vendors and providers in the ordinary course of business.
The Court also approved, on an interim basis, the Company's $300 million
debtor-in-possession (DIP) financing with Citibank, N.A. The final hearing on
the DIP financing is scheduled for February XX, 2000. The DIP financing and
existing cash flows will be used to fund the Company's ongoing operations during
the restructuring and will be more than ample for such purposes.
-more-
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.
Statements in this press release concerning the Company's business outlook or
future economic performances, anticipated profitability, revenues, expenses or
other financial items, and product or service line growth, together with other
statements that are not historical facts, are "forward-looking statements" as
that term is defined under the Federal Securities Laws. Any forward-looking
statements are estimates, reflecting the best judgment of the party making such
statements based upon currently available information and involve a number of
risks, uncertainties and other factors which could cause actual results to
differ materially from those stated in such statements. Risks, uncertainties and
factors which could affect the accuracy of such forward-looking statements are
identified in the public filings made by the Company with the Securities and
Exchange Commission, and forward-looking statements contained in this press
release or in other public statements of the Company should be considered in
light of those factors. Such factors may include, without limitation, the
availability and terms of capital in light of recent losses, cash flow
shortfalls and the Company's Chapter 11 bankruptcy filing; adverse actions which
may be taken by creditors and the outcome of various bankruptcy proceedings; the
Company's ability to attract patients given its current financial position; and
the effects of healthcare reform and legislation on the Company's business
strategy and operations. There can be no assurance that factors will not affect
the accuracy of such forward-looking statements. The Company cautions investors
that any forward-looking statements made by the Company are not guarantees of
future performance. The Company disclaims any obligation to update any such
factors or to announce publicly the results of any revisions to any of the
forward-looking statements included herein to reflect future events or
developments.
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