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Case 1:04-cv-01565-SLR

Document 125-12

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Case 1:04-cv-01565-SLR

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Case 1:04-cv-01565-SLR

Document 125-12

Filed 04/17/2007

Page 21 of 30

January

24 2002
Bob Gaddigan

To Mr
Re
Dear

Contract with

Cerberus

Bob
asked

Ste1ve

me

to

provide
the list

you with

list

of the various

deals

work on

last

year

for

Cerberus Heres

Curative

Advised Advised

Kevin Genda Kevin Genda Kevin Genda

Hanger Orthopedics MaxiCare

Advised

NCSS
Sunstar

Pharmacy
Health

Advised Bob Davenport
Advised Advised

Pacificare

Ron
Bill

Goldstein RichterJNeporent

Wiuterland

Advised
resulted

Kevin Genda
in to

While

Winterland

was

loss

work from $44
decision rescue
to

reduction

Cerberus investment

exposure
part try

Million
invest

$20 Million

Note Iwas
wascought

not
in to

of
to

the

in

Winterland

but

do

mission

Kindred

Advised

Ron

Goldstein

Estimate

Gain

at

$40- $50 Million

Sun Health

Advised

Ron Goldstein

Estimate

Gain

at

$1

Million

PHP
Beverly Nursing

Advised

Dan Wolf

Estimate Gain

at

$1

$2

Million

Advised

Peter

Locke

Estimate

Gain on debt of 18% $13-

$l4Million/Year

Other

activities

Recruiting fund

Advise/counsel
for

Locating

Board Members

Assisting

in

raising Research Steve

Bob Davenport

Kevin Genda Neporent

Ron
and
Bill

Goldstein Richter

Feinberg Seth Plattus

Mark

Please

provide

this

information

to

Mr

Feinberg

CRX

00606

A891

Case 1:04-cv-01565-SLR

Document 125-12

Filed 04/17/2007

Page 22 of 30

FEB-21--2002 FEO 21

1459
2002

tIXH

S-ELST

FD

fND 9164496059 10 13126211750 P.02/02

P.02/02

1320

FR

January

242002
Bob

To Mr Re
Dear

Gaddigan

Contract with

Cerberus

Bob
provide
the list

Steve asked me to Cerbens -11ere

you with
-.-

list

of

the

various

deals

work on

last

year

for
--.--

--

Curative

Advised
Orthopedics

Kevin Genda Kevin Genda Kevin Genda

Hanger

Advised Advised
Advised Advised Advised

MaxiCare

NCSS
Sunstar

Pharmacy
Health

Bob Ron
Bill

Davenport Goldstein RichterlNeporent

Pacificare

Winterland

Advised
resulted Million
invest

Kevin 3enda
in to

While
Cerberus

Winterland investment

was

loss

work from $44
decision to rescue

reduction

exposure part of
try to the

$20 Million

Note

was

not
in to

in

Winterland

but

was brought

do

mission

Kindred

Advised

Ron Ron

Goldstein

Estimate Gain

at

$40

$50 Million

Sun Health

Advised

Goldstein

Estimate Gain

at

$1 Million

Advised

Dan Wolf
Peter

Estimate Gain

at

$2 Million

Beverly Nursing

-htL
Other

2cttvitleS

PL
Advised
fund 3ildstein Richter
this

Locke

Estimate Gain

on debt

of 8% $13-

$l4Million/Year

W.U
Advise/counsel
for

Qp.t
Members
Neporent
Assisting
in

Recruiting

Locating

Board

raising Research Steve

Bob Davenport
Seth Plattus

Kevin Genda

Ron
and
Bill

Feinberg

Mark

Please

provide

information

to

Mr

Feinberg

p-.-

A892

Case 1:04-cv-01565-SLR
MPR
11

Document 125-12

Filed 04/17/2007
TO

Page 23 of 30
P.02

2002

1426

FR

9164496059

SCHREIBER

Coa

HEALTHCARO

I5SeventeenthSrree
Suke 2100

Dcnr

CoIodo

a0202

303.22.4973
303.298.0043

00 .OAM
VAX

-1C

www.cormheaIthc2fe.Com

March11

2002

HonorableJudge Trustee 1600

Arliri

Adams
Corporation

Coram

Healthcare Suite

Market

Street

3600

Philadelphia

Pennsylvania 19103-7286 1-2i5-75-2416

ViaFacsimile

Dear Judge

Adams

the courtesy of introducing Thank you for extending on yourself to me via telephone Friday As we discussed there really are no immediate issues that threaten Corams viability negative

Coram
after

continues

to

experience has

positive positive Sales

EBITDA
cash

although

its

net

income

is

the
it

ITDA
paying
to

Coram

balance

of $25928022.02

this

morning and
past six

is

its bills

promptly

have

been growing modestly for the

months

That said
discuss the

the

management

team

is fragile

and when
related to

appropriate

would

be pleased Program

Motion before Judge Wairath

Key Employee

Retention

KIRP
years

Over the past two

have

communicated
letters

with

Corams Board
letters

of Directors
for

at

meetings and through periodic
along with
all

All of these and

are available reports the
that

your review

other pertinent

communications copy of the any
or
all last

management
lettrs
letters to

For your
Please
let

infonnation

am

enclosing
to

two

Board

me
else

know
prior

if to

you wish

receive

of the past

or

for

matter anything

commencement.of

your investigation

Since

August been

2000 when
to

the valuation

experts

detetmined

that

Corarn

was

insolvent

we

have

attempting

Reorganize
Partners

through

Chapter 11

Despite

opinions
that

from TJBS

Warbnrg
and
is

Chardn Capital

Joldin

Associates and Deloitte on two occasions
of

Coram was
due
to

insolvent

Judge Wairath denied have had Employment
will

confirmation Cerberus

primarily

continuing Section recognizes consultant

relationship

with

one

Corams Note Holders
that. the

of

my

Corarri executive

Agreement
other business

stipulates interests

Company
or not

that to

have The

and may serv as an officer
Cerberus such
as

other

businesses
Cerberus

work

have
in

done

for

does

relate

to

Corarn i.e

advised

on investments

healthcare

Beverly

Nursing

Homes of

Florida

Quest

Kindred Nursing

Homes

Sun Healthcare
Curative

Nursing

Homes

Health Plan

Services

MCA
others

PHP

Health

Plan Winterland
with

Healthcare Hanger Research

Orthopedics and many
locating potential
is

also

assisted Cerberus

Healthcare

Board

Members Fund
excluded in

Raising work

and Management

Team Recruitment

Corarn

contractually

my

forCerberus

EXHIBIT CRX00037

____
C-l%/

31.-/o7

A893

Case 1:04-cv-01565-SLR
MR
11

Document 125-12

Filed 04/17/2007
TO SCHREIBER

Page 24 of 30
P.03

2002

.1426

FR

9164496059

PagL2of3
Letter to

Pages Judge

Adams

dated

March 11 2002

Throughout Friedman
advised

the

process .we have
Capital

been

advise.d

by Kasowitz

Benson Tones and

Chanip

Partners
that

ReedS

mith and ErnstYoung
for the
first

Mr
to

Friedman need
fOr greater

me

andthe

BOard

the reason

denial

related

disclosure

of
or

my work
anyone
suggest

for Cerberus

and related
to

compensation

At no time did
with

Mr
did

Frindman Friedman

else advise that

me

discontinue

my

work

Cerberus

Nor

Mr
The

ever

Coriun obtain

authority for

my

continued

employmentof

most recent Plan of Reorganization
with

was preceded by numerous

disclosures the

my work
the

Cerberus

Form 10K
the
aiid

Form

OQs

and the actual Plan which
prior
to

Judge

Equity

Committee and
were reviewed

Note Holders approved

reviewed

circulation

All

of these documents

by the Coram Board

After

the

1g

Plan was denied Judge Wairath approved Goldin
in

the Independent conflict
will

Board Members and the related

Motion
issues that..

to retain

Associates 122-page

to

investigate

the alleged

Goldin indicated there
is

report

copy of which

be sent overnight

no evidence

suggestingthat

had he Crowley

had no conflict Crowley
stabilize

would have managed Corarns operations or finances more Corams operations and improve its financial performance
Noteholders and the stockhOlders probed
the underlying
facts in this

effectively t goal shared
in his

by the
they

Goldin also indicated
matter

report

that

..

and sought
is

to

adduce

any

evidence

of
the

wrongdoing
evidence of

Goldin concluded
conflict to

that interest

there

..

no

such evidence

other than

finding of an actual

of

by
or

the

Court and Goldin alsofound..
to vindicate

no

proclivity

whitewash

tilt

facts

Mr

Crowley The

Post

petition plan

Coram-has
exactly

received

two

clean

audit

opinions

from Ernst

Young
for the

.2

was

as recommended

by Goldin

Associates

who
his

acted

Independent proponent

Board
in

Members

as

an Independent
or offering
.of

Advisor with
the

own Counsel
after

was

not

the

development

2d Plan However
relationship with

the

was denied

formally

suspended

my
with

contractual

Cerberus

Judge

Adams
want

realize that along Plan
to

investigating

the facts

that

you are charged

with
of

developing another

of Reorganization
that

and with
to

the overall supervision/operation

Coram

you

know

you will find us
to

be open

and honest
in that

We
am

welcome
that

your presence here
lead
to to fair

and are prepared
resolution
to

cooperate

unstintingly

any process

will

and

timely

of

this

reorganization

To

end

willing to

come

yout offices or

be available

for

you anywhere

you wish

CRX

00038

A894

Case 1:04-cv-01565-SLR
-111R

Document 125-12

Filed 04/17/2007
TO SCHREIBER

Page 25 of 30
P.04

ii

2002

1427

FR

9164496059

Page3of3Pages
Letter to

Judge

Adams

dated

March

11 2002

Your Honor know

as

you begin
to

to get

sense

of Coram have

think acted

that
in

is

impoitaiit for other

you
that

to

that in addition

being

CEO

of Coram

principally

come

as

result

of overseeing of nearly $37
point

fragile

many ways company and its turnaround
In

In

1999

Coram
gain

had.an

EBITDA

loss

$50

Million 2001 was

2000

Corams EBITDA
solid year in
viability spite

was
of
is

from operations
adversities
to

of over The

Million
is

another

numerous
the result

that thc

turnaroun4 dedication

and current

of Coram
in

significant

extent of

my own
inc

intensity and immersion

the

day

to

day operation

of Coram

This

commitment which
is

continues fine

on

my

part

to

this

day
this

Coram remains

very dependent

upon
the

because

care

greatly about daily

Company
patients

its

management

team

2100

Coram employees
Accordingly
for operating

Corams 18000 am open

its

customers vendors

and
or

investors

to discussing

with you
progress

any plan you may have continues

develop

Coramn

so that-the

firms

Sincerely

Daniel-

Crowley
President

Chairman

CEO

Attachments
Board

Letters

dated

February

28

and March 5th 2002

Cc
Feldman WilsonSonsini
Fiiedman
Schreiber

Kasowitz

Benson

Torres

Friedman

Much

Schelist General

Marabito

Interim

Counsel

Corarn Healthcare

Corporation

CRX00039

A895

Case 1:04-cv-01565-SLR
MflR

Document 125-12

Filed 04/17/2007
TO SCHREIBER

Page 26 of 30
P.@5

11

2@2 1427

FR

91G44965

CoaM

HEALTttCAR

ULT
of Directors
Healthcare Corporation

r6jBau4wy
.SUIC9OO Dencr.Colocdo

8oo

3o32p2.4973J2OOcoYJI3tc
303.672.U73

AX

W.comCcam

Febrnaxy282002

Board

Comm

Dear Fellow Board

Member
activities at

This \ve

is

brief

update of the
teiepbonic

Coraxn as
this

supplement

to

the discussions

bail

on our

Board

1ecting

morning

Coram5
slowdown

cash

flow has

still

not fully recovered

from the combination

of seasonal
efibri

by payers
it

and the impact of our Billing Site consolidation cash collections
ure continuing
to

However

is

clear that

improve every

day
was and the
will

Sce 52515410134
Directors decline level
arid this

Attachment

Cash in Corams
This balance
is

checkbook

as

of Februaiy
for both

272002

aftermalcingpayment

Cardinal

Officers
to

Insurance

As

is

the

normal situation
to

the balance the

week

reflect

payroll and collection

will recover

approximately

same
cuiient

with next Mondays

Accounts

Payable remains

relatively

Importantly

Comm
to

has not taken

draw on any revolver

since

November1999
March 2002
ending

Payroll will

continues

be

closely

controlled
to

and for the week ending
for the year

be 5434-4673 2001 and

This compares
to

$4163226
the

ago week

March

$4808104

for

week

ending

March

2000

Sec

Attachment

Despite

the Daily

uncrtainty
Sales

of

Tnistee has

coming

on

Sales

for

Comm

continue

to

grow
October
is

Revenue

been up over the year ago month for September
so far
iii

November

December January and

February

Here

is

the

way

looks

2001

2002

September October

51455.000

$1525000 51466000 $1635000 $1621000 S1S75000 51574727

$1448oo0 $1541000 51619000 51491000 51458000

November December

January February

Day

19

of

21

Days

CRX

00040

A896

Case 1:04-cv-01565-SLR
MR
11

Document 125-12

Filed 04/17/2007
TO SCHREIBER

Page 27 of 30
P.06

20@2

1427

FR

9164496059

Page2of2Pages
Letter

Dated February

28 200

to

Cciram Healthcarc

Board of Directors

Our Day
2000

initiative

to

grow

Heuiojthilia
is

has

also conti 19

ned

to

be successful Revenue

Through
so
far

19 Hcmopbilia
for

up 11% over Day

in .lanuary with

of
in

$3485000
and

February
in

Hemophilia Revenue

was

approximately
to

$28 Million

$37

Million

2001

Clearly
about

it

is

nor appropriate

annualize

Fbruazy

and draw any conclusions
annualize
at

2002
2002
to

That said

Hemophilias

run rate
is

would

about

$42

Million

for

$3485000
grow
this

12

Thc

point

we

seem to have

created
it

the tight

framework
into

product

and with

proper

focus

and attention

may develop

meaningful unit for Corarn

At

the

same time Vancomycin
financial taken

continuea

to

be

jpr negathe
the to

issuc taxnping price

down

perfonnauce
last

at

Corarn

The impact of
continues

unilateral

reduction

July

by Abbott
the price
to

damage

Crarns

EfflIDA
for

See Attachment EBITDA reductions
Month

With
related

cuts

Comm

has suffered
a-s

virtually

Vanconaycin

since July

follows

Variance

June2001 July2001 August2001 September2001 October2001

NA
$1063310 $1084272 911774 $1151627 $1082684

November2001 Dcccmber 2001
1anuary 2002

1076982

LL42L

I1ot

BBITDA

L$7519296

Chairman

President

CEO

Cc

A.Marabito Fddrnan

CRX

00041

A897

Case 1:04-cv-01565-SLR
11fR

Document 125-12

Filed 04/17/2007
TO SCHREIBER

Page 28 of 30

11

2002

1428

FR

9164495059

CotIctons
th

c-i
ci

_____

.1

II

-ZLI

CRX

00042

A898

Case 1:04-cv-01565-SLR
11

Document 125-12

Filed 04/17/2007

Page 29 of 30

14

1b44b

10

SCHREIBER

I1llhJuhJHJIOffhII1I1igiO1JIIiJtE

11

CRX

00043

A899

Case 1:04-cv-01565-SLR
rij-1

Document 125-12

Filed 04/17/2007
IU

Page 30 of 30

ii

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