wfn.org | NBA SEEKS DAMAGES FROM LAW FIRM INVOLVED IN BANKRUPTCY PROCEEDINGS

["Wilma Shuffitt" <wshuffitt@cm.disciples.org>]

Date: Sept. 20, 2005
Christian Church (Disciples of Christ)
Phone: 317-713-2492
E-mail: news@cm.disciples.org
on the Web: http://www.disciples.org

(INDIANAPOLIS (DNS) -- Sept. 19, 2005 -- The National Benevolent Association (NBA) has filed suit against the New York-based law firm that served as
chief counsel during NBA's recent bankruptcy proceedings. The St. Louis,
MO non?profit is seeking at least $40 million in damages for unnecessary
professional fees together with other damages.

The lawsuit was filed against Weil, Gotshal & Manges (Weil) on Thursday,
Sept. 15 in the U.S. Bankruptcy Court in San Antonio, TX, the court which
presided over the NBA bankruptcy. NBA alleges that Weil failed to act as
reasonably prudent attorneys in their representation of the NBA by, among
other things, making unreasonable demands in negotiations with lenders,
leading the NBA to believe that the bankruptcy process was likely to
result in a substantial reduction in bond and bank debt and failing to
advise the NBA that filing the bankruptcy created a significant risk that
the NBA would have to sell most or all of its senior care facilities. The
NBA further alleges that Weil breached its fiduciary duty to the NBA by,
among other things, advising the NBA to pursue a course of action that was
unfavorable to the NBA but was designed to generate excessive fees to
Weil.

In April the NBA Board of Trustees agreed to engage counsel to inquire
into the issues surrounding NBA's financial restructure and bankruptcy.
Following a search, NBA hired Daniel J. Sheehan & Associates in Dallas,
TX, to conduct the inquiry and to report to the board at its June meeting.
Based on the recommendations in that report, the board authorized Daniel
J. Sheehan & Associates to file a formal complaint against Weil.

On Friday, NBA also announced that it had reached a settlement with Huron
Consulting Group of Chicago which has agreed to reduce its professional
fees charged to NBA by $500,000. NBA engaged Huron as its professional
financial advisor in May 2003 while the non-profit attempted to negotiate
with creditors to restructure approximately $230 million of debt.

NBA and the U.S. Trustee for the Western District of Texas also have filed
objections to payment of fees submitted by Cain Brothers, an investment
banking firm hired by NBA before and during bankruptcy. A hearing on the
objection is scheduled for Sept. 26 in the bankruptcy court in San
Antonio.

NBA, the social and health services division of the Christian Church
(Disciples of Christ) once owned or managed in excess of 90 facilities in
more than 20 states. At its height, it provided care and housing to nearly
20,000 people and had more than 2500 employees. NBA now operates five
facilities - three for children (two in Missouri and one in Alabama) and
two for the developmentally disabled (one in California and one in
Missouri).

To read the entire legal filing against Weil, Gotshal & Manges, go to:
http://www.disciples.org/dns/Releases2005/NBAComplaint.pdf

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Contact:
Wanda Bryant Wills
317-713-2496
wbwills@cm.disciples.org

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