InterCare Inc said it terminated plans to acquire Universal Care, a California health
mainenance organization, following First Jersey Securities'
decision to withdraw as underwriter for InterCare's proposed
public debt and equity securities offering.
    The acquisition was contingent on its ability to obtain
financing to fund the 1.9 mln dlr cash portion of the purchase
price, InterCare said.
    It also said the offering was aimed at raising 7.5 mln dlrs
for working capital and 1.7 mln to repay debt incurred in
connection with its recent acquisition of U.S. Medical
Enterprises Inc.
    The company further stated that it has a 1.7 mln dlr
working capital deficit and it will therefore reduce operating
expenses by decreasing operating hours, workforce reductions
and the sale of certain assets.
 Reuter
