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Category 5 Records owner files bankrupcty for nursing home company

Wednesday, November 21, 2007 – The nursing home company owned by the head of Category 5 Records filed for bankruptcy Wednesday, according to the Hartford Courant.

Haven Healthcare has been under investigation since a Courant story on Sunday cited patient care problems at some of the company's 15 homes in the state. The company also allegedly owed millions for unpaid bills and almost had the heat shut off at some of its homes.

The Courant said Connecticut State Attorney General Richard Blumenthal was "prepared today to announce that the state would file a motion to appoint an independent trustee to take control over the chain's nursing home operations throughout the state."

The bankruptcy filing said the firm's 50 largest creditors are owed almost $31 million.

On Haven's web site, Chief Executive Officer Ray Termini said on Nov. 18, "We have weathered financial difficulties, and we are turning things around. It hasn't been easy, but every one of our facilities is better today than when they first became part of the Haven Healthcare family."

The newspaper said Termini used assets of the company to start Category 5 and buy a lakefront home in Middlefield, Conn. Tritt released an album, "The Storm," for the label in August. Sammy Kershaw also is on Category 5, which has not had any hits since it started.

Termini denied any financial wrongdoing. He could not be reached for comment Wednesday.

In a statement posted on Haven's web site, Termini said, "story unfairly misrepresents Haven Healthcare's commitment to quality care, adequate staffing and financial management. The story references seven malpractice cases while ignoring the fact that Haven has served 15,000 medically complex and frail elderly in the past three years. The complete circumstances of each lawsuit and Haven's point of view are not represented at all in the story. The story takes into account the words of those who stand to gain financially by their negative statements."

Tritt's manager said Tuesday he was upset by the allegations against Haven Healthcare and Termini.

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