United States Bankruptcy Court for
the Eastern District of Louisiana
Case No.’s 99-11875-11, et seq.
(Jointly Administered)

Axiom Healthcare Services, Inc., together with six (6) wholly owned
limited liability companies (collectively “Axiom”), filed voluntary chapter
11 petitions for relief. Pursuant to an order entered by the Bankruptcy
Court, Tutera began managing the following six (6) skilled nursing
facilities leased or owned and operated by Axiom that are located in the
State of Oklahoma:

Tutera also provided Axiom with a debtor in possession line of credit
in the total amount of $500,000 for use as working capital at the facilities. Shortly following the filing of the proceeding, Tutera determined that Axiom would be unable to reorganize its affairs, primarily since five (5) of the facilities were leased by Axiom and the landlord was unwilling to make the concessions necessary to allow the facilities to operate profitably.
Therefore, upon the advice of Tutera, the Court rejected the leases for the
five (5) facilities, thereby preserving the ability of Axiom to pay its administrative expense claims owing to creditors.