Ventas, Inc. Message Board

Then click on Case Number, then click on Docket.

Click on Webpacer then enter Vencor under Search.

http://www.deb.uscourts.gov/wadesys.htm

Here is a list of Bond holders and information on
VC Bankrupcy from Lexington, KY Herald Leader. May
have to type link in.


http://www.kentuckyconnect.com/heraldleader/news/100299/businessdocs/02vencor.ht
m


Partial message below:


Published Saturday,
October 2, 1999, in the
Herald-Leader

Vencor
might offer shareholders
warrants

By Janet
Patton
HERALD-LEADER BUSINESS WRITER

Vencor
shareholders, left with stock worth only pennies
now that
the company is in bankruptcy, could get the

chance to recover some of their investment.


Vencor attorney Thomas Moloney said shareholders

could be given warrants -- a chance to ``buy stock at
the
same price they offer it to creditors'' if and
when new
stock is issued.

The
Louisville-based long-term care provider might use
such an
offer ``to provide the company more working

capital,'' Moloney said.

Such warrants are also part
of the package being worked
out to reduce the
company's debt by $900 million by
giving shares to
creditors.

The warrants would kick in after the banks get
back all
their debt, Moloney said.

The
opportunity to purchase new Vencor stock at a lower
price
than that offered to regular investors has a value
as
well.

``Warrants have a value whether you
exercise them or
not,'' said Stephen A. O'Neil, a
Hilliard Lyons analyst in
Louisville. Warrants may be
sold to someone else, he
said.

But without
final details, ``it's hard to say what people

should think,'' said O'Neil, whose clients include
Vencor
shareholders.

Moloney said yesterday that
the reorganization, which
could be finalized in
the next six months, ``is working
within the same
framework discussed in court.''

That plan would
give 56 percent of the company to the
banks, 29
percent to the 500-plus bondholders and the
remaining
15 percent to real estate spinoff Ventas, which

owns the hospitals and nursing homes that Vencor

operates.

The U.S. regional bankruptcy trustee has
appointed a
seven-member, bondholder-dominated
Official
Committee of Unsecured Creditors to represent
those
interests. The committee includes: HSBC Bank
USA,
Appaloosa Investment Limited Partnership,
Franklin
Mutual Shares Fund, Bank of New York, Ventas,

MEDIQ/PRN Life Support Services and Boise Cascade

Office Products.

The first creditors' meeting
will be on Oct. 22, when a
company officer will
testify about company assets and
liabilities.


Yesterday, a Delaware bankruptcy judge gave
final
approval to the rest of Vencor's $100 million

debtor-in-possession line of financing. That provides
money for
day-to-day operations if the company needs it.
So far,
Vencor has no outstanding obligation under this

financing.

While the company tries to cope with the
remaining $2.9
billion in debt, Ventas has also agreed
to cut monthly rent
payments from $19 million to
$15.1 million beginning
last month.

Vencor
also has to find a way to pay back more money to

the federal government. Already repaying more than
$90
million, Vencor could be forced to return
``several
hundreds of millions'' more, Moloney said last
month.

<<<I have learned a valuable lesson with
Vencor. Numbers don't matter a bit. Vision is
meaningless. Marketplace potential is worthless. Management
integrity, honesty, and openess is a must. Without that,
none of the other factors matters.>>>
(Insighter)


INSIGHTER,

I well knew the Truth of what you wrote above but I
forgot it in my GREED to make a fast buck when Vencor
dropped in price and all the insiders were loading up
last summer.

The only shark surviving in a a
school of sharks is a bigger shark. I have no desire to
be or even swim with sharks. They only end up
devouring each other. I have better fish to fry. <G>

Alas, the lesson has been taught a thousand
times. Management integrity, honesty and openness is a
must indeed, but competence is the first requirement.
I believe that with Vencor, B.L. simply reached his
level of incompetence. Common enough. I'm watching to
see who emerges to lead the organization(s) out to
recovery - or just out.

Amen. Learned from a corporate lawyer recently- He thinks Eddie is a shrewd buisnessman, says right now it feels like a start-up company, thinks it's exciting, we'll see....

approach to this financial crisis. Why didn't VC
start with workforce reductions FIRST? Then, if things
still could not be worked out, you would seek to
restructure the debt.

I have learned a valuable lesson
with Vencor. Numbers don't matter a bit. Vision is
meaningless. Marketplace potential is worthless. Management
integrity, honesty, and openess is a must. Without that,
none of the other factors matters.

Thanks again for posting info from Schroder
especially since
you no longer own VTR.Hope you continue
as you get new reports.

2 points:
1.I
think rental reduction is retro to May 1,1999-not April
1.

2.$.61 estimated dividend for 1999 per Schroder
will only
net an additional $.22 since VTR has
already paid $.39 in
Feb,99.

The dividend
estimated to be paid in 2000 is then $.87 per
Schroder
assuming their assumptions are correct and the

proposed deal goes thru.My financial analysis forecasted
zero
dividend for 1999 and between $.80 and $.90 for
2000 so we
basically agree.( now if we can only be
correct )

IMO,we are in a waiting period and a
trading range between
$4.50 and $5.25 until the
following occurs:

1.Govt issue is settled and
announced
2.VTR's $275,000,000 Oct 31,99 term loan is
renegotiated and
announced.

Obviously,if they
both get done,VTR goes up.If not,VTR goes

down.

As it relates to VCRI,BK court approved
$100,000,000 DIP
financing so that appears to be moving
forward OK.

2 questions:
1.Did Schroder
estimate the new interest rate?The last one
I saw was
9%.

2.Is Schroder still using $75,000,000 in their
assumptions
as the VTR's share of the Govt settlement or did
they
increase? I used $100,000,000 in my
assumptions.

Again,Thanks for info.Very helpful.

I just finished reading Schroder's latest report
occasioned by the analyst's visit to VTR. He is still
holding to FFO projections of $1.29 for 1999 and $1.32
for 2000. He expects $.61 dividend to be paid
sometime in 2000 for 1999 income plus an estimated $.65
for 2000 income. Dividends should increase after
that. Says hurdles still substantial before making the
posted reorg plan legally binding - but those hurdles
are far more managemeable than what the parties have
already undertaken in planning the resturcutur of VCRI's
balance sheet. He says "It appears that the actual filing
of a plan of reorganization is contingent on
resolution (at least substantial) of both VTR's $275 billion
term loan, due on October 31, and the in-process
settlement of the government's investigation into VCRI's
historical billing practivces. Our sense is that such issues
could push the filing of a plan of reorganization into
November. However, we view the structure of the
reorganization as very positive for VTR over the longer term, in
regard to VTR's ability to generate an attractive,
growing dividend stream. We maintain VTR on our
Recommended list." Agreement with VTR creditors will probably
be a last minute thing - but forcing VTR to file for
bankruptcy protection would not be a desirable for any of
the creditors since all debt is equal. There will
likely be an agreement to extend the due date of debt
and increase the interest rate. Incidentally, the
agreement to reduce rent is retroactive to April 1, 1999.
Schroder expects new Plan of Reorganization to be filed in
mid 4Q 1999 and the new VCRI to be created by the end
of March 2000. The analyst also expects an agreement
with the Federal Government during October 15-November
15 time period. Management will not comment on the
likely settlement - for obvious reasons. I sold because
the stock seemed to need a pause. I hope to get back
in though. Good luck and good investing.

Aren't some of the 'old' vencor board members,
board members of the 'new' ventas? And when the VC did
it's split, didn't the stock holders receive one share
of VC and on of VTR ? And It's the Barr/Lundsford
tag team major participants in the that one and one
share deal?

So the same people are still major
holders of VC and VTR. So they lost money on paper, but
they still have the shares. Am I right?

So who
holds the bonds? Institional investors, mutuals, banks,
or individuals? The banks hold the major percentage
now, but is it possible that Mike and Bruce could find
enough cash to buy their way back in, and take it
private?

Let me know your thoughts, thanks.