Stipulation and Order Regarding Tax Refund Proceeds Between Vencor, Inc. and Ventas, Inc.

Contract Categories: Business Operations › Settlement Agreements
Summary

This agreement is between Vencor, Inc. and its affiliates (the Debtors) and Ventas, Inc. and its affiliates. It addresses the handling of certain tax refunds received after a corporate reorganization and during Vencor's bankruptcy proceedings. The parties agree to segregate and hold the tax refund proceeds in separate, interest-bearing accounts until the bankruptcy court determines who is entitled to the funds. The agreement is only effective if approved by the bankruptcy court and can be terminated if not approved by a set date or upon notice by either party.

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EX-10.6 5 0005.txt TAX STIPULATION EXHIBIT 10.6 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE - ---------------------------------x : In re: Chapter 11 : VENCOR, INC., et al., Case No. 99 3199(MFW) -- -- : through 99-3327(MFW) Debtors. : (Jointly Administered) : - ---------------------------------x STIPULATION AND ORDER --------------------- This stipulation and order (the "Stipulation and Order") is entered into as of the date set forth below by and among the above-captioned debtors and debtors-in-possession (collectively, the "Debtors"), and Ventas, Inc., on behalf of itself and each of Ventas Realty, Limited Partnership and Ventas LP Realty, L.L.C. (collectively, "Ventas," and, together with the Debtors, the "Parties"). WHEREAS, on May 1, 1998, Ventas, Inc. effected a corporate reorganization (the "1998 Spin Off") pursuant to which Ventas, Inc. (then known as Vencor, Inc.) was separated into two publicly held corporations. A new corporation, subsequently renamed Vencor, Inc., was formed to operate the hospital, nursing center and ancillary services businesses. The continuing corporation, now known as Ventas, Inc., continued to hold title to substantially all of the real property; and WHEREAS, the 1998 Spin Off was effected through an Agreement and Plan of Reorganization by and between Vencor, Inc. (now Ventas, Inc.) and Vencor Healthcare, Inc. (now Vencor, Inc.) dated as of April 30, 1998 and related agreements (the "Reorganization Agreements"); and WHEREAS, the Debtors, Ventas, Inc. and Ventas Realty, Limited Partnership are parties to a stipulation, dated September 13, 1999 (the "Rent and Reorganization Stip"), governing, among other things, the payment of rent and performance under the Reorganization Agreements by the Debtors during the pendency of the chapter 11 cases and the period in which the Rent and Reorganization Stip is in force and effect; and WHEREAS, the Rent and Reorganization Stip remains in full force and effect; and WHEREAS, on September 15, 1999, Ventas, Inc. filed its 1998 consolidated federal income tax return (the "Consolidated Return"); and WHEREAS, pursuant to the Consolidated Return, on February 3, 2000, Ventas received a tax refund in the total amount of $26,609,865.60 (comprised of $25,349,528.00 in tax and $1,260,337.60 in interest) (the "Federal Refund Proceeds"); and WHEREAS, the Tax Refunds/1/ received by Ventas prior to the date hereof are listed on Exhibit A hereto (such Tax Refunds listed on Exhibit A (which includes the Federal Refund Proceeds) and any Tax Refunds received by Ventas on or after the date hereof, together with the Interest Amount/2/ thereon, are collectively referred to herein as the "Ventas Refund Proceeds"); and ____________________ /1/ For purposes of this Stipulation and Order, "Tax Refunds" shall mean all refunds received (including those endorsed over by one Party to the other Party in which case such refund shall be deemed received by the Party to which the refund was endorsed over) on or after September 13, 1999, in respect of federal, state or local property, franchise, income, excise, sales and use, and similar business taxes previously paid for tax years ending prior to or including April 30, 1998; provided, however, that Tax Refunds shall not include the refund of over payments or estimated taxes to the extent such over payments or estimated taxes were paid by a Party after April 30, 1998 and subsequently refunded by the applicable tax authority. /2/ For purposes of this Stipulation and Order, "Interest Amount" shall mean, with respect to a Tax Refund, interest on the Tax Refund computed at the lesser of (a) the actual interest -2- WHEREAS, simultaneously with the execution hereof, Ventas has delivered to the Debtors a list of the Pre-Spin Refunds/3/ received by Ventas; and WHEREAS, the Tax Refunds received by the Debtors prior to the date hereof are listed on Exhibit B hereof (such Tax Refunds listed on Exhibit B and the Tax Refunds received by the Debtors on or after the date hereof, together with the Interest Amount thereon, are collectively referred to herein as the "Vencor Refund Proceeds" and together with the Ventas Refund Proceeds, are referred to as the "Refund Proceeds"); and WHEREAS, simultaneously with the execution hereof, the Debtors have delivered to Ventas a list of the Pre-Spin Refunds received by the Debtors; and WHEREAS, Ventas asserts that it is entitled to the Refund Proceeds on various legal grounds, including, without limitation, pursuant to the express terms of the Reorganization Agreements and, alternatively, that any claim of the Debtors to the Refund Proceeds is subject to, without limitation, recoupment, setoff and other defenses and claims of or by Ventas under the Reorganization Agreements and the Rent and Reorganization Stip; and WHEREAS, the Debtors assert that they are entitled to the Refund Proceeds on various legal grounds; and ________________ earned, and (b) 3% annual interest, for the period during which such Tax Refund is deposited in a Ventas Account or Vencor Account (as such terms are defined below) as the case may be. /3/ For purposes of this Stipulation and Order, "Pre-Spin Refunds" shall mean all refunds received (including those endorsed over by one Party to the other Party in which case such refund shall be deemed received by the Party to which the refund was endorsed over) on or after January 1, 1999, but prior to September 13, 1999, in respect of federal, state or local property, franchise, income, excise, sales and use, and similar business taxes previously paid for tax years ending prior to or including April 30, 1998; provided, however, that Pre-Spin Refunds shall not include the refund of over payments or estimated taxes to the extent such over payments or estimated taxes were paid by a Party after April 30, 1998 and subsequently refunded by the applicable tax authority. -3- WHEREAS, each Party seeks to protect the Refund Proceeds pending resolution of the rights of the Parties. NOW, THEREFORE, IT IS STIPULATED AND AGREED by and between the Parties that: 1. In the event that the Bankruptcy Court fails to approve this Stipulation and Order on or before May 31, 2000, or such approval is subsequently modified, rescinded or stayed, this Stipulation and Order shall automatically terminate and be of no force and effect. Pending approval of the Bankruptcy Court as referenced in the preceding sentence, either Party may terminate this Stipulation and Order by providing one business day's notice (which may be by facsimile transmission) to the other Party. 2. The Ventas Refund Proceeds shall be deposited in one or more segregated interest-bearing accounts at a federally insured depository institution in the name of Ventas, Inc. or Ventas Realty, Limited Partnership; provided, however, that all or a portion of the Ventas Refund Proceeds may be invested in a commercially reasonable manner so long as any investment of the Ventas Refund Proceeds remains segregated from the other investments of Ventas, Inc. and Ventas Realty, Limited Partnership (any such depository or investment account or other investment of Ventas Refund Proceeds, a "Ventas Account"). Ventas shall provide the Debtors with notice within two business days after (a) the opening of a Ventas Account (which notice shall specify the location of the Ventas Account, including the account number); and/or (b) the receipt of a Tax Refund (which notice shall specify the amount of the Tax Refund, the Ventas Account into which such Ventas Refund Proceeds have been deposited and the facts and circumstances giving rise to the Tax Refund and include a copy of the refund claim). Upon request of the Debtors, Ventas shall promptly (which in no case shall exceed two business days) provide the Debtors with the monthly written account statements received by Ventas for each of -4- the Ventas Accounts, it being understood that Ventas may redact any information that is unrelated to the Ventas Accounts. If all or any portion of the Ventas Refund Proceeds are transferred between Ventas Accounts, Ventas shall promptly provide written notice (which in no case shall exceed two business days) to the Debtors of the Ventas Account into which the Ventas Refund Proceeds (or portion thereof) have been transferred. This Stipulation and Order and the terms and conditions hereof, including the establishment and maintenance of a Ventas Account, shall not be (a) deemed an admission by any Party in respect of any matter whatsoever; (b) probative of the Parties' respective rights, if any, to the Refund Proceeds or any portion thereof, including any principal or interest component thereof; or (c) otherwise affect or impair any rights of the Parties. 3. The Vencor Refund Proceeds shall be deposited in one or more segregated interest-bearing accounts at a federally insured depository institution in the name of Vencor, Inc.; provided, however, that all or a portion of the Vencor Refund Proceeds may be invested in a commercially reasonable manner so long as investment of the Vencor Refund Proceeds remains segregated from other investments of Vencor, Inc. and any of the other Debtors (any such depository or investment account or other investment of Vencor Refund Proceeds, a "Vencor Account"). The Debtors shall provide Ventas with notice within two business days after (a) the opening of a Vencor Account (which notice shall specify the location of the Vencor Account, including the account number); and (b) the receipt of a Tax Refund (which notice shall specify the amount of the Tax Refund, the Vencor Account into which such Vencor Refund Proceeds have been deposited and the facts and circumstances giving rise to the Tax Refund and include a copy of the refund claim). Upon request of Ventas, the Debtors shall promptly (which in no case shall exceed two business days) provide Ventas with the monthly written account statements received by the Debtors for each of the Vencor Accounts, it being understood that the Debtors -5- may redact any information that is unrelated to the Vencor Accounts. If all or any portion of the Vencor Refund Proceeds are transferred between Vencor Accounts, the Debtors shall promptly provide written notice (which in no case shall exceed two business days) to Ventas of the Vencor Account into which the Vencor Refund Proceeds (or portion thereof) have been transferred. This Stipulation and Order and the terms and conditions hereof, including the establishment and maintenance of a Vencor Account, shall not be (a) deemed an admission by any Party in respect of any matter whatsoever; (b) probative of the Parties' respective rights, if any, to the Refund Proceeds or any portion thereof, including any principal or interest component thereof; or (c) otherwise affect or impair any rights of the Parties. 4. Ventas or the Debtors, as the case may be, shall provide notice (a "Notice") to the parties listed on Exhibit C by facsimile (receipt confirmed) and overnight mail at least five (5) business days prior to withdrawing the Refund Proceeds or any portion thereof (the "Waiting Period") from a Ventas Account (in the case of Ventas) or a Vencor Account (in the case of the Debtors); provided, however, that the foregoing shall not apply to the extent that the Refund Proceeds are being transferred from one Ventas Account to another Ventas Account or from one Vencor Account to another Vencor Account, in which case paragraphs 2 and 3 hereof respectively shall govern; provided, further, that the foregoing shall apply as modified below in the case of a Tax Payment Withdrawal. A "Tax Payment Withdrawal" is a withdrawal by Ventas from a Ventas Account or by the Debtors from a Vencor Account if such withdrawal is made for the sole purpose of applying such amounts in payment of federal, state or local property, franchise, income, excise, sales and use, withholding, or similar tax liability, including interest and penalties, if any, for tax years ending prior to or including April 30, 1998, up to the amount of the Refund Proceeds then contained in the applicable Ventas or Vencor Account. Ventas shall be permitted to make Tax Payment Withdrawals from Ventas Accounts and the Debtors shall be -6- permitted to make Tax Payment Withdrawals from Vencor Accounts upon such withdrawing Party's delivery of Notice regarding any such withdrawal, which shall include a copy of any applicable notice or other related documents and any return or other form filed with the taxing authority in respect of the payment made using the Tax Payment Withdrawal. Upon the expiry of any applicable Waiting Period, the Party providing the Notice shall have no further obligations pursuant to this Stipulation and Order respecting the use, maintenance, deposit or investment of any portion of the Refund Proceeds that is the subject of such Notice. 5. The Parties reserve all rights with respect to their claims, defenses and contentions regarding the Refund Proceeds except as expressly provided in paragraph 6 hereof. 6. Nothing in this Stipulation and Order shall constitute admissions by any of the Parties or shall be used in any subsequent litigation by the Parties or any other person or entity other than for the purpose of enforcement of this Stipulation and Order. 7. Without limiting the provisions of paragraph 4 hereof, any notices to be sent in accordance with this Stipulation and Order will not be effective unless sent to the following: To Ventas: General Counsel Ventas, Inc. 4360 Brownsboro Road, Suite 115 Louisville, KY 40207-1642 Fax ###-###-#### David Peress, Esq. Young Conaway Stargatt & Taylor Rodney Square North, 11th Floor Wilmington, DE ###-###-#### Fax ###-###-#### Myron Trepper, Esq. and Michael J. Kelly, Esq. Willkie Farr & Gallagher 787 Seventh Avenue -7- New York, New York 10019 Fax ###-###-#### To the Debtors: M. Suzanne Riedman, Esq., General Counsel Vencor, Inc. 680 South Fourth Street Louisville, KY 40202 Fax ###-###-#### William H. Sudell, Jr., Esq. Morris, Nichols, Arscht & Tunnell 1201 North Market Street P.O. Box 1347 Wilmington, Delaware 19899 Fax ###-###-#### Thomas J. Moloney, Esq. and Lindsee P. Granfield, Esq. Cleary, Gottlieb, Steen & Hamilton One Liberty Plaza New York, New York 10006 Fax ###-###-#### 8. This Stipulation and Order shall be automatically terminated, without further order of the Bankruptcy Court, on the earlier of the dates on which: (a) the Rent and Reorganization Stip is terminated; and (b) the Debtors provide notice pursuant to Paragraph 4(b) of the Rent and Reorganization Stip. -8- Dated: New York, New York May __, 2000 CLEARY, GOTTLIEB, STEEN & HAMILTON One Liberty Plaza New York, New York 10006 ###-###-#### By:__________________________ Attorneys for Debtors and Debtors in Possession WILLKIE FARR & GALLAGHER 787 Seventh Avenue New York, New York 10019 ###-###-#### By:__________________________ Attorneys for Ventas, Inc. SO ORDERED this ____ day of May 2000: ______________________________ UNITED STATES BANKRUPTCY JUDGE -9- EXHIBIT A
- -------------------------------------------------------------------------------------------------------------------------------- Date From Regarding Federal ID - -------------------------------------------------------------------------------------------------------------------------------- 27-Sep-99 Marietta, Ohio Nationwide Care, Inc. 35-1871185 - -------------------------------------------------------------------------------------------------------------------------------- 18-Oct-99 Bowling Green, KY Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 20-Oct-99 McCracken County, KY Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 20-Oct-99 McCracken County, KY First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 21-Oct-99 Ashland, KY Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 21-Oct-99 Elizabethtown, KY First Healthcare Corporation - -------------------------------------------------------------------------------------------------------------------------------- 22-Oct-99 Chillicothe, OH First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 2-Nov-99 Madisonville, KY Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 3-Nov-99 Village of Whitehouse First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 3-Nov-99 Hancock County, Kentucky Vencor Kentucky, Inc. - -------------------------------------------------------------------------------------------------------------------------------- 5-Nov-99 Cambridge, OH Ventas, Inc. 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 8-Nov-99 Akron, Ohio First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 8-Nov-99 Cambridge, OH Nationwide Care, Inc. 35-1871185 - -------------------------------------------------------------------------------------------------------------------------------- 9-Nov-99 Mercer County, KY Vencor Kentucky, Inc. - -------------------------------------------------------------------------------------------------------------------------------- 10-Nov-99 Logan, Ohio First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 10-Nov-99 Logan, Ohio Ventas, Inc. (fka Vencor, Inc.) 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 11-Nov-99 Bowling Green, KY First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 12-Nov-99 Owensboro, KY First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 12-Nov-99 Elizabethtown, KY Vencor Kentucky, Inc. - -------------------------------------------------------------------------------------------------------------------------------- 15-Nov-99 Coshocton Ventas, Inc. 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 18-Nov-99 Morgantown Vencor Kentucky, Inc. - -------------------------------------------------------------------------------------------------------------------------------- 22-Nov-99 Marion, OH First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 22-Nov-99 Springfield, OH Ventas, Inc. 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 22-Nov-99 Marion, OH Ventas, Inc. (fka Vencor, Inc.) 2100009359 - -------------------------------------------------------------------------------------------------------------------------------- 23-Nov-99 Summitt County Facility - Property Tax Refund From Protest - -------------------------------------------------------------------------------------------------------------------------------- 1-Dec-99 Less fee for Property Tax Protest to Ambassador Research - -------------------------------------------------------------------------------------------------------------------------------- 24-Nov-99 Toledo, OH First Healthcare Corporation 42-43-2780 - -------------------------------------------------------------------------------------------------------------------------------- 26-Nov-99 Connecticut Ventas, Inc. (FKA Vencor, Inc.) 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 2-Dec-99 Maryland Vencor Hospitals East, Inc. 61-1251013 - -------------------------------------------------------------------------------------------------------------------------------- 6-Dec-99 Lansing, MI First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 13-Dec-99 Lexington-Fayette Board of Ed. Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 15-Dec-99 Dayton, OH Ventas, Inc. 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 15-Dec-99 Coshocton Nationwide Care, Inc. 35-1871185 - -------------------------------------------------------------------------------------------------------------------------------- 20-Dec-99 Louisiana First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 20-Dec-99 Cincinnati, OH Ventas, Inc. (fka Vencor, Inc.) 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 23-Dec-99 Wisconsin First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 27-Dec-99 Utah Vencor Inc. & Subsidiaries 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 27-Dec-99 Utah Ventas Inc. & Subsidiaries 61-1055020 - -------------------------------------------------------------------------------------------------------------------------------- 27-Dec-99 West Virginia Vencor Kentucky, Inc. 61-1258030 - -------------------------------------------------------------------------------------------------------------------------------- 29-Dec-99 Michigan First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 5-Jan-00 Newark, OH First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 10-Jan-00 Iowa First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 11-Jan-00 Louisiana Vencor Properties, Inc. 51-0352067 - -------------------------------------------------------------------------------------------------------------------------------- 21-Jan-00 Indiana Nationwide Care, Inc. - -------------------------------------------------------------------------------------------------------------------------------- 21-Jan-00 Columbus/Canal Winchester, Ohio First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 21-Jan-00 Columbus, Ohio Vencor Hospital East, Inc. 61-1251013 - -------------------------------------------------------------------------------------------------------------------------------- 4-Feb-00 Alabama First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- 16-Feb-00 Missouri First Healthcare Corporation ###-###-#### - -------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- Date Type AMOUNT - ---------------------------------------------------------------------------------------------------------------- 27-Sep-99 Marietta Income Tax Return 1,508.00 - ---------------------------------------------------------------------------------------------------------------- 18-Oct-99 City Net Profit License Fee Return 737.00 - ---------------------------------------------------------------------------------------------------------------- 20-Oct-99 Annual License Fee Return 851.00 - ---------------------------------------------------------------------------------------------------------------- 20-Oct-99 Annual License Fee Return 475.00 - ---------------------------------------------------------------------------------------------------------------- 21-Oct-99 Net Profit License Fee Return 2,073.00 - ---------------------------------------------------------------------------------------------------------------- 21-Oct-99 Net Profits License Fee Return 301.00 - ---------------------------------------------------------------------------------------------------------------- 22-Oct-99 Income Tax Return 859.00 - ---------------------------------------------------------------------------------------------------------------- 2-Nov-99 Net Profit License Fee Return 478.00 - ---------------------------------------------------------------------------------------------------------------- 3-Nov-99 Income Tax Return 600.00 - ---------------------------------------------------------------------------------------------------------------- 3-Nov-99 Net Profit License Fee Return 25.00 - ---------------------------------------------------------------------------------------------------------------- 5-Nov-99 Income Tax Return 45.00 - ---------------------------------------------------------------------------------------------------------------- 8-Nov-99 Income Tax Return 1,600.00 - ---------------------------------------------------------------------------------------------------------------- 8-Nov-99 Income Tax Return 1,000.00 - ---------------------------------------------------------------------------------------------------------------- 9-Nov-99 Net Profits License Fee Return 157.19 - ---------------------------------------------------------------------------------------------------------------- 10-Nov-99 Income Tax Return 1,113.00 - ---------------------------------------------------------------------------------------------------------------- 10-Nov-99 Income Tax Return 111.00 - ---------------------------------------------------------------------------------------------------------------- 11-Nov-99 City Net Profit License Fee Return 620.00 - ---------------------------------------------------------------------------------------------------------------- 12-Nov-99 Net Profit License Fee Return 506.00 - ---------------------------------------------------------------------------------------------------------------- 12-Nov-99 Net Profits License Fee Return 69.00 - ---------------------------------------------------------------------------------------------------------------- 15-Nov-99 Income Tax Return 85.00 - ---------------------------------------------------------------------------------------------------------------- 18-Nov-99 License Fee Division 727.00 - ---------------------------------------------------------------------------------------------------------------- 22-Nov-99 Income Tax Return 1,074.00 - ---------------------------------------------------------------------------------------------------------------- 22-Nov-99 Business Income Tax Return 396.00 - ---------------------------------------------------------------------------------------------------------------- 22-Nov-99 Income Tax Return 200.00 - ---------------------------------------------------------------------------------------------------------------- 23-Nov-99 Property Taxes 73,816.04 - ---------------------------------------------------------------------------------------------------------------- 1-Dec-99 Fee paid consultant for lowering taxes related to above facility (36,854.10) - ---------------------------------------------------------------------------------------------------------------- 24-Nov-99 Income Tax Return 1,000.00 - ---------------------------------------------------------------------------------------------------------------- 26-Nov-99 Combined Corporation Business Tax Return 18,331.00 - ---------------------------------------------------------------------------------------------------------------- 2-Dec-99 Corporation Income Tax Return 1,151.00 - ---------------------------------------------------------------------------------------------------------------- 6-Dec-99 Income Tax-1998 Corporation Return 403.00 - ---------------------------------------------------------------------------------------------------------------- 13-Dec-99 Net Profits License Fee Return 478.00 - ---------------------------------------------------------------------------------------------------------------- 15-Dec-99 City Income Tax Return 185.00 - ---------------------------------------------------------------------------------------------------------------- 15-Dec-99 Income Tax Return 1,600.17 - ---------------------------------------------------------------------------------------------------------------- 20-Dec-99 Corporation Income Tax Return 1,925.00 - ---------------------------------------------------------------------------------------------------------------- 20-Dec-99 Income Tax Return 16.00 - ---------------------------------------------------------------------------------------------------------------- 23-Dec-99 Corporation Franchise or Income Tax Return 82,617.00 - ---------------------------------------------------------------------------------------------------------------- 27-Dec-99 06-95 to 05-96 Corporate Franchise Tax Resulting From Automatic NOL Carryback 33,829.00 - ---------------------------------------------------------------------------------------------------------------- 27-Dec-99 06-96 to 12-96 Corporate Franchise Tax Resulting From Automatic NOL Carryback 15,306.00 - ---------------------------------------------------------------------------------------------------------------- 27-Dec-99 Business Franchise Tax Return 11.00 - ---------------------------------------------------------------------------------------------------------------- 29-Dec-99 Single Business Tax Annual Return 43,644.91 - ---------------------------------------------------------------------------------------------------------------- 5-Jan-00 Business Tax Return 1,947.00 - ---------------------------------------------------------------------------------------------------------------- 10-Jan-00 Iowa Corporate Income Tax Return 152.40 - ---------------------------------------------------------------------------------------------------------------- 11-Jan-00 Louisiana Corporation Income Tax Return 626.00 - ---------------------------------------------------------------------------------------------------------------- 21-Jan-00 Sales Tax Audit 15,638.64 - ---------------------------------------------------------------------------------------------------------------- 21-Jan-00 City Income Tax Return / Business Return 1,921.00 - ---------------------------------------------------------------------------------------------------------------- 21-Jan-00 City Income Tax Return / Business Return 3,500.00 - ---------------------------------------------------------------------------------------------------------------- 4-Feb-00 Corporation Income Tax Return 18,693.15 - ---------------------------------------------------------------------------------------------------------------- 16-Feb-00 Corporation Income Tax Return 9,350.25 - ----------------------------------------------------------------------------------------------------------------
EXHIBIT A
- ----------------------------------------------------------------------------------------------------------- Date From Regarding Federal ID - ----------------------------------------------------------------------------------------------------------- 8-Mar-00 Georgia Ventas, Inc. (FKA Vencor, Inc.) 61-1055020 - ----------------------------------------------------------------------------------------------------------- 13-Mar-00 Lexington-Fayette Urban Co. Govt Vencor Kentucky, Inc. 61-1258030 - ----------------------------------------------------------------------------------------------------------- 30-Mar-00 Vermont Ventas, Inc. & Affiliates 61-1055020 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 Village of West Lafayette First Healthcare Corporation ###-###-#### - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 North Carolina Ventas, Inc. - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 Maryland Vencor Hospital East, Inc. 61-1251013 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 Board of Commissioners - Pasco Co. Ventas Realty 99014053 - ----------------------------------------------------------------------------------------------------------- 17-Apr-00 North Carolina First Healthcare Corporation ###-###-#### - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- SUBTOTAL - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- 3-Feb-00 Federal Tax Refund - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- TOTAL =========================================================================================================== - ----------------------------------------------------------------------------------------------------------- Date Type AMOUNT - ----------------------------------------------------------------------------------------------------------- 8-Mar-00 Corporation Tax Returns 9,770.00 - ----------------------------------------------------------------------------------------------------------- 13-Mar-00 Net Profits License Fee Return 1,625.00 - ----------------------------------------------------------------------------------------------------------- 30-Mar-00 57,662.00 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 Corporation, Partnership or Fiduciary Income Tax Return 400.00 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 1998 Corporate Income Tax Refund 141.34 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 1998 Withholding 70.52 - ----------------------------------------------------------------------------------------------------------- 3-Apr-00 Refund of Solid Waste Refund for 1999 (Pasco County, Dade City, Florida) 53.26 - ----------------------------------------------------------------------------------------------------------- 17-Apr-00 Corporate Franchise and Income Tax Return 129,460.22 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- 504,079.99 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- 3-Feb-00 26,609,865.60 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- 27,113,945.59 ===========================================================================================================
REFUND ANALYSIS EXHIBIT B Refunds from Tax Return Periods 5/1/98 and Prior September 13, 1999 through May 22, 2000 REFUNDS REFUNDS REFUNDS REFUNDS REFUNDS RECEIVED RECEIVED RECEIVED RECEIVED RECEIVED DESCRIPTION @ 9/13 - 9/30/99 @ 10/31/99 @ 11/30/99 @ 12/31/99 @ 01/31/00 - -------------------------------------------------------------------------------------------------------------------------------- INCOME/FRANCHISE TAX REFUNDS: IRS - Hillhaven Corp 33 0 0 0 0 IRS - Transitional Hospitals Corporation 143,067 0 0 0 0 IRS - TheraTx, Inc. 0 0 0 0 0 HAWAII - Theratx, Inc. 0 0 0 825 0 HAWAII - Vencare, Inc. 0 0 0 300 0 INDIANA - Vencor Home Hospice 0 0 0 15,281 0 INDIANA - Vencor Insurance Company 0 0 1,346 0 0 INDIANA - Ventech Systems, Inc. 451 0 0 0 0 IOWA - Vencare, Inc. 0 0 0 49,848 0 LOUISIANA - CPC of Louisisana, Inc. 4,888 0 0 0 0 LOUISIANA - Medisave Pharmacies, Inc. 0 0 0 0 39,970 ARIZONA - American X-Rays, Inc. Refund 178 0 0 0 0 INDIANA - Ventech Systems, Inc. Interest 31 0 0 0 0 LOUISIANA - CPC of La., Inc. - Interest 10 0 0 0 0 LOUISIANA - CPC of La., Inc. - Refund 223,935 0 0 0 0 TEXAS - Respiratory Care Services, Inc. - Refund 0 489 0 0 0 LOUISIANA - CPC of La., Inc. - Refund 0 1,289 0 0 0 TEXAS - Medisave Pharmacy, Inc. - Refund 0 0 31 0 0 MISSISSIPPI - CPC Properties of Ms., Inc. - Refund 0 0 4,584 0 0 HAWAII - Vencare, Inc. - Interest 0 0 0 2 0 HAWAII - Theratx, Inc. - Interest 0 0 0 6 0 INDIANA - Vencor Hospice, Inc. - Interest 0 0 0 2,670 0 IOWA - Vencare, Inc. - Interest 0 0 0 5,184 0 LOUISIANA - Medisave Pharmacy, Inc. - Interest 0 0 0 0 951 SOUTH CAROLINA - Vencare, Inc. - Interest 0 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------------- Total Income/Franchise Tax Refunds Rec. 372,593 1,778 5,961 74,116 40,921 - -------------------------------------------------------------------------------------------------------------------------------- SALES /USE TAX REFUNDS: Indiana - Ventas 19,548 - -------------------------------------------------------------------------------------------------------------------------------- Total Sales/Use Tax Refunds Received 0 19,548 0 0 0 - -------------------------------------------------------------------------------------------------------------------------------- PROPERTY TAX REFUNDS: Kentucky - TheraTx, Inc. Illinois - Vencor Hospitals Illinois, Inc. Massachusetts Texas 15 Colorado 82 Colorado 1,704 Colorado 273 Colorado 4,430 Washington - First Healthcare Corporation 29,947 Washington - First Healthcare Corporation 31,687 Washington - First Healthcare Corporation 10,581 Washington - First Healthcare Corporation 37,909 Washington - First Healthcare Corporation 3,009 Washington - First Healthcare Corporation 10,074 Tennessee Tennessee 240 - -------------------------------------------------------------------------------------------------------------------------------- Total Property Tax Refunds Received 125,008 4,703 0 0 240 - -------------------------------------------------------------------------------------------------------------------------------- Total Tax Refunds Received 497,601 26,029 5,961 74,116 41,161 ================================================================================================================================ REFUNDS REFUNDS REFUNDS REFUNDS Total Refunds RECEIVED RECEIVED RECEIVED RECEIVED Rec'd 9/13/99 to DESCRIPTION @ 02/28/00 @ 03/31/00 @ 04/30/00 @ 05/01 - 05/22/00 05/22/00 - ---------------------------------------------------------------------------------------------------------------- ---------------- INCOME/FRANCHISE TAX REFUNDS: IRS - Hillhaven Corp 0 0 0 0 33 IRS - Transitional Hospitals Corporation 0 0 213,255 97,165 453,487 IRS - TheraTx, Inc. 1,330,682 0 0 0 1,330,682 HAWAII - Theratx, Inc. 0 0 0 0 825 HAWAII - Vencare, Inc. 0 0 0 0 300 INDIANA - Vencor Home Hospice 0 0 0 0 15,281 INDIANA - Vencor Insurance Company 0 0 0 0 1,346 INDIANA - Ventech Systems, Inc. 0 0 0 0 451 IOWA - Vencare, Inc. 0 0 0 0 49,848 LOUISIANA - CPC of Louisisana, Inc. 0 0 0 0 4,888 LOUISIANA - Medisave Pharmacies, Inc. 0 0 0 0 39,970 ARIZONA - American X-Rays, Inc. Refund 0 0 0 0 178 INDIANA - Ventech Systems, Inc. Interest 0 0 0 0 31 LOUISIANA - CPC of La., Inc. - Interest 0 0 0 0 10 LOUISIANA - CPC of La., Inc. - Refund 0 0 0 0 223,935 TEXAS - Respiratory Care Services, Inc. - Refund 0 0 0 0 489 LOUISIANA - CPC of La., Inc. - Refund 0 0 0 0 1,289 TEXAS - Medisave Pharmacy, Inc. - Refund 0 0 0 0 31 MISSISSIPPI - CPC Properties of Ms., Inc. - Refund 0 0 0 0 4,584 HAWAII - Vencare, Inc. - Interest 0 0 0 0 2 HAWAII - Theratx, Inc. - Interest 0 0 0 0 6 INDIANA - Vencor Hospice, Inc. - Interest 0 0 0 0 2,670 IOWA - Vencare, Inc. - Interest 0 0 0 0 5,184 LOUISIANA - Medisave Pharmacy, Inc. - Interest 0 0 0 0 951 SOUTH CAROLINA - Vencare, Inc. - Interest 0 0 1,343 0 1,343 - ---------------------------------------------------------------------------------------------------------------- ---------------- Total Income/Franchise Tax Refunds Rec. 1,330,682 0 214,598 97,165 2,137,814 - ---------------------------------------------------------------------------------------------------------------- ---------------- SALES /USE TAX REFUNDS: Indiana - Ventas 19,548 - ---------------------------------------------------------------------------------------------------------------- ---------------- Total Sales/Use Tax Refunds Received 0 0 0 0 19,548 - ---------------------------------------------------------------------------------------------------------------- ---------------- PROPERTY TAX REFUNDS: Kentucky - TheraTx, Inc. Illinois - Vencor Hospitals Illinois, Inc. 11,127 11,127 Massachusetts 5,083 5,083 Texas 15 Colorado 82 Colorado 1,704 Colorado 273 Colorado 4,430 Washington - First Healthcare Corporation 29,947 Washington - First Healthcare Corporation 31,687 Washington - First Healthcare Corporation 10,581 Washington - First Healthcare Corporation 37,909 Washington - First Healthcare Corporation 3,009 Washington - First Healthcare Corporation 10,074 Tennessee 16,390 16,390 Tennessee 16,843 17,083 - ---------------------------------------------------------------------------------------------------------------- ---------------- Total Property Tax Refunds Received 16,210 0 33,233 0 179,394 - ---------------------------------------------------------------------------------------------------------------- ---------------- Total Tax Refunds Received 1,346,892 0 247,831 97,165 2,336,756 ================================================================================================================ ================
Exhibit C --------- Vencor Bank Group - ----------------- Mr. Houston Stebbins Morgan Guaranty Trust Company DIP Agent 60 Wall Street, 23/rd/ floor New York, New York 10260 Karen Wagner, Esq. Davis, Polk & Wardwell 450 Lexington Avenue New York, New York 10017 Joel B. Zweibel, Esq. O'Melveny & Myers, LLP Citicorp Center 153 E. 53/rd/ Street New York, New York 10022 Official Committee of Unsecured Creditors - ----------------------------------------- Chaim J. Fortgang, Esq. Wachtell, Lipton, Rosen & Katz 51 West 52/nd/ Street New York, New York 10019 The Office of the United States Trustee - --------------------------------------- John D. McLaughlin, Jr., Esq. Office of the U.S. Trustee 601 Walnut Street The Curtis Center Suite 950 West Philadelphia, PA 19106