Graceway Trustee Slams Distributor's Bid To Cut Debt

Law360, New York (June 1, 2012, 5:50 PM EDT) -- Graceway Pharmaceuticals LLC's liquidating trustee told a Delaware bankruptcy judge Thursday that its health care products distributor Cardinal Health Inc. was violating a contract by trying to offset part of its $6.7 million debt to the skin care company.

Trustee Kip Horton asked U.S. Bankruptcy Judge Peter J. Walsh to deny Cardinal's April 10 motion seeking to reduce what it owes under a wholesale purchase agreement, or WPA. Cardinal has claimed it can reduce its $6.7 million WPA debt by at least $1.4 million, representing the...
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