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

To: Kurthend who wrote (895)	7/12/1998 2:33:00 PM
From: Terry Maynard	Respond to of 1110

The phrase "at the time" may be the key. That was stated at the announcement of the loan last week. A lurker. Terry

To: Kurthend who wrote (895)	7/12/1998 8:26:00 PM
From: Douglas V. Fant	Respond to of 1110

Kurt, I can't comment on the 300,000 lives removed-tell me what cash flow was coming from that group of patients; a large cash flow, a small cash flow? I do not know. As to a Chapter 11 Filing, it can be either benign or poison to the common shareholders. The truth however is usually somewhere in between which is what may happen here. In reality the FPAM executives as well as the various doctors of acquired clinics hold FPAM stock. For that reason I believe that the current shareholders will be around post-reorganization. Dilution however will come from a debt-for equity swap IMO- that was "hinted at" in the last press release. Now whether the swap comes within or without of a Chapter 11 proceeding is irrelevant to me- the same thing (Debt/equity swap) will happen in either case. Indeed a Chapter 11 Filing may be good to resolve the unsecured claims raised by lawsuits and also to "strongarm" any remaining uncooperative competitors..... Sincerely, Doug F.