Monday November 8, 10:35 am Eastern Time
Company Press Release
SOURCE: National Health & Safety Corporation
National Health Files Plan of Reorganization;
Positions POWERx For e-Commerce Launch
WARMINSTER, Pa., Nov. 8 /PRNewswire/ -- National Health & Safety Corporation (OTC Bulletin Board:
NHLT - news) announced today that it has filed a joint corporate Plan of Reorganization with a consortium
of United Realty Group, L.P. and KJE I, Ltd. National Health will receive $2.9 million to develop new
business lines and to expand existing opportunities if the Plan of Reorganization is approved by the U.S.
Bankruptcy Court.
Dr. R. Dennis Bowers, CEO of National Health, indicated that the company's reorganization plan, which
was filed last Friday, expects to accomplish the following goals:
1. Elimination of National Health's debt of $2.5 million.
2. Reduction of corporate operating expenses by 90%.
3. Guaranteed revenue and royalties which will insure National Health's short-term profitability.
4. Expansion financing to develop the company's health insurance products, its medical technology division and other target acquisitions to allow for long-term growth and profitability.
5. Full compensation to National Health's creditors, paid in corporate
stock.
The joint filing comes only one month after the October 1 sale by National Health of its POWERx Division
to MedSmart Healthcare Network, which is also an affiliate of the Dallas-based consortium. MedSmart
expects to generate significant royalty payments to National Health on its POWERx sales. In addition, the
POWERx product under MedSmart will receive expansion financing and a significant array of financial
processing technology and internet resources required to bring the POWERx Network to the e-commerce
marketplace.
National Health filed for reorganization under Chapter 11 on July 1. Since that time the company has
received approval from the Federal Bankruptcy Court to sell the POWERx division of the company,
completed the sale of that division to MedSmart and filed a joint Plan of Reorganization.
National Health is the founder of the POWERx Medical Benefits Network, a comprehensive national
medical network of more than 750,000 hospitals, doctors, surgeons, endodontists, pharmacies and other
healthcare providers. Through the POWERx network, consumers are able to purchase most healthcare
products and services at discounts of up to 60 percent, whether or not the person is insured.
''The filing of the plan places us exactly on schedule for achieving the total reorganization and financing
of the company,'' said Bowers. He also noted that National Health has successfully reduced corporate
expenses in October, 1999, by 85 percent compared to October, 1998, a reduction of $108,000 for the
month. |
