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Biotech / Medical : FPA Medical Management - FPAMQ -- Ignore unavailable to you. Want to Upgrade?

To: Baoho Chang who wrote (753)	6/19/1998 11:40:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 1110

Baoho, Under Chapter 11 the Company entering the proceeding has the right either to "affirm" or to "reject" all of the contracts to which it is currently subject. It is a unilateral choice of FPAM- the other side has no say. In that fashion the Company can "affirm" its good contracts and "reject" its bad contracts as a routine part of its reorganization process. As to the type of Compay FPAM is, then you would not even be likely aware that you are working with an entity under Chapter 11. But you raise a good point. Has anyone heard of FPAM contacting its major customers and assuring them of its uninterrupted business support? I have not; so for that reason, I am not certain that FPAM willrun under the protection of Chapter 11.... I believe that negotiations continue on a finance package- three weeks (July 8th) deadline is lots of time for negotiating... But we'll see soon! (And in any case FPAM's stock price has already priced in the contingency of a bankruptcy filing).... Sincerely, Doug F.