US Oncology Debtholders Seek $40M From McKesson Tie-Up

Law360, New York (August 2, 2011, 5:57 PM EDT) -- Holders of $775 million in US Oncology Inc. debt told a New York state judge Tuesday that the cancer treatment service provider owes them $40 million more to redeem their debt securities following a merger with pharmaceutical distributor McKesson Corp.

The phrase "remaining term," which effects how an early-redemption premium is calculated, isn't clearly defined in the complex securities contract, Daniel A. Ross of Stroock & Stroock & Lavan LLP, an attorney for the debtholders, told New York Supreme Court Judge Bernard Fried.

"That's how people...
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