DOJ Wants Trustee In Meningitis Pharmacy Bankruptcy

Law360, New York (January 08, 2013, 6:11 PM ET) -- The chief restructuring officer hired by New England Compounding Center to oversee its liquidation after the pharmacy was linked to a deadly meningitis outbreak is “hopelessly conflicted” and should be replaced with a court-appointed Chapter 11 trustee, the federal government said Tuesday.

The U.S. Department of Justice asked a Massachusetts federal bankruptcy court to appoint a case trustee to take over NECC's restructuring. The DOJ argued that a trustee was warranted because of gross mismanagement by the company's directors before the bankruptcy was filed. An accountant...
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