Conflict Escalates Between Pharma, Bank

Law360, New York (July 12, 2007, 12:00 AM EDT) -- A fracas between a bank and a pharmaceutical firm has prompted two multimillion-dollar lawsuits and a Chapter 11 filing for the drug company's two U.S. subsidiaries.

The latest development came Wednesday when a bankruptcy court approved Inyx Inc. Chairman Dr. Jack Kachkar to become the debtor-in-possession lender for U.S. units Inyx USA and Exaeris Inc. Lender Westernbank Puerto Rico had opposed the move. Westernbank and Inyx filed lawsuits accusing each other of fraud and breach of contract, among other things.

The initial legal volley after Westernbank,...
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