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FocalPoint represented Care Level Management Group as financial advisor in its Chapter 11 bankruptcy proceedings

WOODLAND HILLS, CA, June 25, 2008 — FocalPoint represented Care Level Management Group, Inc. and its affiliates (“Care Level”) as financial advisor in its Chapter 11 bankruptcy proceedings. Care Level provides physician care and care management services to enrolled patients in their homes on behalf of their respective health plans. Care Level filed for bankruptcy protection on May 5, largely as a result of the loss of a large Centers for Medicare & Medicaid Services (CMS) demonstration project in December 2007.

Although the Company was out of cash, FocalPoint organized the key stakeholders and arranged for debtor-in-possession financing to avoid an immediate liquidation while implementing a rapid bankruptcy sale process. FocalPoint identified the going concern value in five affiliated medical groups that Care Level operated in New York, Pennsylvania, Florida, Texas and Arizona, contacted potential strategic buyers who would recognize the residual value in these groups, and created a process that resulted in acceptance of a stalking horse bid within 10 days of the bankruptcy filing.

FocalPoint worked closely with the stalking horse bidder — Pacific Venture Group’s portfolio company INSPIRIS, a Brentwood, TN-based provider of care and care management services for frail and chronically ill seniors — to ensure that the transaction closed in the most timely manner, only 55 days after the filing of the bankruptcy. The Care Level transaction assured that continued care would be provided to over 1,600 high risk patients, and more than 50 experienced employees in five geographic markets were absorbed under INSPIRIS management.

“FocalPoint’s efforts not only avoided what appeared to be a likely liquidation at the outset, but their rapid sale process also produced a result that significantly exceeded the expectations for recovery of the senior lender,” added Ron Bender of Levene, Neale, Bender, Rankin & Brill L.L.P., which served as bankruptcy counsel to Care Level.

“As credit markets have tightened and the economy continues to slow, companies in many industries find themselves either overleveraged or needing to refinance their existing credit facilities. The current environment is forcing such companies to explore strategic alternatives, including restructurings and/or distressed sales of assets,” noted Jim Skelton, Managing Director at FocalPoint. “The Care Level transaction represents another successful closing from our restructuring advisory team, which is increasingly busy as the cycle matures. We have now closed four cases in the last nine months.”

About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), and financial restructurings/distressed M&A. In distressed situations, FocalPoint works with companies inside or outside of bankruptcy to formulate and then execute creative strategies that address complex issues by combining its M&A and capital raising expertise.

Please contact Jim Skelton or Nishen Radia at 310-405-7000 with any questions about this transaction.