In re: Brentwood Nursing and Rehabilitation Center, Inc.

United States Bankruptcy Court for
the Northern District of Illinois

Brentwood North Nursing and Rehabilitation Center, Inc., an Illinois
corporation (“Brentwood”), together Riverwoods Associates
(“Riverwoods”) each filed Voluntary Chapter 11 Petitions for Relief with
the United States Bankruptcy Court for the Southern District of Florida,
which cases were later transferred to the United States Bankruptcy
Court for the Northern District of Illinois (the “Court”). Riverwoods
owns and leases Brentwood Nursing and Rehabilitation Center, a 244
licensed bed skilled care and rehabilitation facility located near Deerfield,
Illinois (the “Facility”) to Brentwood. Tutera took over the management
of Brentwood immediately prior to the filing of the chapter 11 proceedings
and, in conjunction therewith, offered to make a debtor in possession
loan in the amount of $500,000 available to Brentwood. However, this
offer ultimately caused Brentwood’s primary working capital lender to
make a $500,000 debtor in possession loan available to Brentwood on
virtually identical terms and conditions as those offered by Tutera.
Tutera managed this facility until it was eventually sold through a
bankruptcy court auction after Tutera had stabilized its operations.