KENNETT SQUARE, Penn., Nov. 11 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today addressed the restructuring plan (Plan) approved
today by the shareholders of Genesis Health Ventures, Inc. (NYSE: GHV),
ElderTrust's most significant customer. Among other things, the Plan settled
a significant liability incurred by Genesis for the acquisition of The
Multicare Companies, Inc. Under the Plan, this liability will be resolved
through the issuance by Genesis of additional equity securities. In addition,
the new equity holders will contribute $50 million into Genesis.
"Settling the Multicare acquisition liability is a significant achievement
for Genesis and we applaud the efforts of all involved," said D. Lee McCreary,
Jr., ElderTrust's President and Chief Executive Officer. Mr. McCreary added,
"As we have said in the past, we believe that positive developments at Genesis
indirectly benefit ElderTrust. Our recent refinancing efforts have driven
home the need to have a healthy tenant operating our properties. To the
extent this Plan improves the financial health of our principal customer, it
should also enhance ElderTrust's position in the capital markets."
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the
East Coast of the United States. Since commencing operations in January 1998,
the Company has acquired direct and indirect interests in 31 buildings and has
loans outstanding of $49 million in construction and term financing on eight
additional healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although ElderTrust believes the expectations
reflected in such forward-looking statements are reasonable assumptions, it
can give no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from ElderTrust's expectations
include real estate conditions, the Company's ability to refinance its
existing bank credit facility, changes in the economic conditions and other
risks detailed from time to time in the Company's SEC reports and filings.
The Company assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events.
For more information on ElderTrust via fax at no charge, please dial
1-800-PRO-INFO and enter ticker symbol ETT, or visit ElderTrust's Web site at
http://www.eldertrust.com .
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
Kelly McAteer, Investor Relations of The
Financial Relations Board, 610-925-4200
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