Brentwood, Tenn., August 10, 2007 – H³GM attorneys advised Advocat Inc. (NASDAQ: AVCA) on the acquisition of seven skilled nursing facilities from Senior Management Services of America North Texas, Inc. (SMSA) for approximately $10.1 million. The transaction required a multifaceted team of attorneys from the firm’s healthcare, commercial finance and bankruptcy practice areas. The H³GM healthcare and bankruptcy attorneys worked together to advise Advocat on the purchase agreement and related operational issues associated with purchasing assets from SMSA.  The transaction was approved by the United States Bankruptcy Court for the Northern District of Texas as part of SMSA’s Chapter 11 plan.

The H³GM commercial finance attorneys worked with Advocat and LaSalle Bank NA on the related financing which consisted of a $16.5 million term loan and $15 million revolving credit facility.  The term loan was used to finance the SMSA acquisition and refinance certain existing Advoct indebtedness.  The revolving credit facility will be used to support a letter of credit facility and or working capital needs.

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Harwell Howard Hyne Gabbert & Manner, P.C. has earned a national reputation for providing sound legal advice to business clients for over 30 years.  Our attorneys advise clients in matters critical to their business success.  H³GM attorneys represent public and private companies across a wide range of industries.  For more information visit www.h3gm.com