NATIONAL CENTURY: Trust Wants HCA Claim Reduced to $1,992,756

NATIONAL CENTURY: Trust Wants HCA Claim Reduced to $1,992,756


INTEGRATED HEALTH: Wants Approval of Medshares Settlement Pact
NAT'L CENTURY: Restructuring Transactions Under Liquidation Plan
INTEGRATED HEALTH: Wants Approval of Medshares Settlement Pact
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Integrated Health Services, Inc., and its debtor-affiliates ask
the Court to approve their settlement agreement with Meridian
Corporation, also known as Medshares, Inc.

Alfred Villoch, III, Esq., at Young, Conaway, Stargatt & Taylor,
LLP, in Wilmington, Delaware, informs the Court that Integrated
Health Services Inc. and Medshares are both debtors in their own
Chapter 11 cases and each has filed a series of claims in the
other's cases.

The Medshares Claims

The Medshares Debtors timely filed 51 proofs of claim in the IHS
cases. Eleven of these claims where expunged by two Court orders
on February 22, 2001, leaving these 40 Claims pending -- 07256,
08174, 08175, 08176, 08177, 08178, 08179, 08180, 08184, 08185,
08186, 18187, 08188, 08189, 08191, 08192, 08193, 08194, 08196,
08197, 08199, 08201, 08203, 08204, 08205, 08206, 08223, 08399,
08400, 08401, 08402, 08403, 08404, 08405, 08406, 08407, 08408,
08409, 10965, 11287 amounting to $270,584,165. These Claim were
listed in the claims register as priority claims.

The Medshares Claims arose from IHS's sale of its home healthcare
nursing services business, IHS Home Care Inc., to Medshares/IHS
Acquisition, Inc. for $21,625,000, subject to certain potential
adjustments, pursuant to a December 19, 1998 Stock Purchase
Agreement. Each of the Medshares Claims asserts a right to
indemnification or an adjustment to the purchase price under the
Stock Purchase Agreement or other relief arising from it.

On February 10, 2003, the IHS Debtors sought for the disallowance
of the Medshares Claims or, in the alternative, for the
reduction, reclassification and estimation of the Claims.
Thereafter, the Medshares Claim were reclassified as non-priority
unsecured claims and collectively capped at $25,000,000.

The IHS Claims

On April 28, 2000, IHS timely filed proofs of claim in the
Medshares' cases also arising from the sale of its healthcare
nursing services business to Medshares. The IHS Claims set forth
administrative claims amounting to:

(1) $156,463 for Medicare overpayment reimbursed in error to
Medshares rather than IHS;

(2) $1,773,021 owing on equipment leases transferred from IHS
to Medshares in connection with the sale; and

(3) $1,870,135 arising from IHS's indemnification rights with
respect to its obligations under real property leases
rejected by Medshares.

Medshares disputed these three administrative claims. On
October 16, 2000, IHS asked the Tennessee Court to allow the
claims for $3,799,619. IHS's request remains pending.

Claims Settlement

The Settlement Agreement provides that:

(a) Medshares will withdraw their $270,584,165 claim filed in
the IHS case;

(b) the IHS Debtors will withdraw their $3,799,619 claim filed
in the Medshares cases; and

(c) the parties will exchange releases.

Mr. Villoch asserts that the Settlement Agreement provides
substantial and quantifiable economic benefits to the Debtors'
estates and their unsecured creditors. While the Debtors dispute
the amounts of the Medshares Claims, the outcome of the objection
is far from assured. The Settlement eliminates tens of millions
of dollars of potential prepetition liability.

In addition to the quantifiable benefits, the Settlement
Agreement also allows the Debtors to:

(a) avoid the disruption and distraction of prosecuting and
defending complex litigation in the Delaware and Tennessee
bankruptcy courts;

(b) avoid the substantial administrative costs and the
uncertain outcomes of these litigations; and

(c) maintain their focus on reorganization issues and their
core businesses.

Although the value of these additional benefits cannot be
precisely calculated, they translate to a substantial financial
benefit to the Debtors' estate and their reorganization, Mr.
Villoch says. (Integrated Health Bankruptcy News, Issue No. 64;
Bankruptcy Creditors' Service, Inc., 609/392-0900)


INTERNET SERVICES: Case Summary & 20 Largest Unsecured Creditors
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Lead Debtor: Internet Services of Michigan, Inc.
3625 Park Place
Suite 150
Mishawaka, Indiana 46545

Bankruptcy Case No.: 03-12921

Debtor affiliates filing separate chapter 11 petitions:

Entity Case No.
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Internet Services Management Group, Inc. 03-12922
Internet Direct Communications, Inc. 03-12923
Skye Internet Holdings, Inc. 03-12924

Type of Business: The Debtor is an Internet service provider.

Chapter 11 Petition Date: September 23, 2003