NAHC, Inc. Reports Developments in Connection With Approximately $36.8 Million in Escrow
From the Sale of the PROH Division to Select Medical
Friday, June 23, 2000 06:03 PM
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KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--June 23, 2000--NAHC, Inc. (OTC Bulletin Board:NAHC,
formerly NovaCare, Inc.,) reported today on developments in connection with the approximately $36.8
million in escrow from the sale of the PROH division to Select Medical. At the quarter ended March 31,
2000, due to previous write-offs, the escrow was carried at approximately $13.8 million.
Select has presented information to the Company that Select believes would entitle it to nearly all
remaining escrow funds. Most of the information relates to collectibility of receivables.
Select has asked the Company to release immediately approximately $17.5 million from the escrow
account. Based on information it has gathered to date, the Company has filed a notice with the escrow
agent that it objects to the release of the escrow funds. The Company is continuing its investigation
into this matter. The Company has also received notice from Select that it is invoking the arbitration
provisions under the purchase agreement with respect to whether the escrow funds should be released.
As a result of several matters, including without limitation, those involving Select and the previously
announced arbitration award for $25 million in favor of Hanger, the Company is in the process of
reviewing and revising its liquidation estimates.
The Company also announced that Stuyvesant Comfort and George Siguler had resigned as Directors
and that David Burt, the Company's Chief Executive Officer, had been elected a Director.
Cautionary Statement
Except for historical information, matters discussed are forward-looking statements that are based on
management's estimates, assumptions and projections. Important factors that could cause results to
differ materially from those expected by management include potential claims related to businesses
sold, the ability of the Company to realize its remaining assets in cash, the cost to wind-up the
Company's affairs in preparation for a potential liquidation, the ability of the Company to identify
potential acquisitions, and the Company's ability to retain management and professional employees
during its wind-down period.
CONTACT: NAHC, Inc.
David R. Burt
(610) 992-7450 |
