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Cents on the dollar

Thursday, August 13, 1998

Pittsburgh Post-Gazette

AHERF's debt to creditors: $1.1 billion*

What's coming in:

Proceeds from sale of Philadelphia hospitals to Vanguard Health System, Inc.: $460 million**

What's going out first:

Loan repayment to Cerberus Partners, L.P., which is providing money to AHERF's Philadelphia hospitals during bankruptcy: $100 million

Legal fees: $5 million***

What's left to pay creditors: $355 million

Creditors could expect to be repaid 32 cents for every dollar they are owed.

What other funds might be tapped:

Money that could be recaptured from a consortium of lenders led by Mellon Bank Corp.: $87 million

Money repaid to Allegheny General Hospital by AHERF's Philadelphia hospitals: $60 million

Proceeds from sale of Allegheny University Hospitals/Rancocas, in New Jersey, which could be as much as $45 million

Another potential buyer outbidding Vanguard: $50 million

Best-case total of funds available to creditors:

$597 million or 54 cents on the dollar

*Excludes $200 million AHERF says its Western Pennsylvania hospitals are owed, but that it will forgive

**Must be approved by bankruptcy court.

***Cap set by the bankruptcy court.

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