Lender Squeeze, Loan Defaults Push Chem Rx To Ch. 11

Law360, New York (May 11, 2010, 3:20 PM EDT) -- Institutional pharmacy Chem Rx Corp. and five subsidiaries filed for Chapter 11 bankruptcy protection Tuesday, a day after lenders asked a state court to prevent the company from spending any more of their cash.

Chem Rx listed assets of $169.7 million and total debt of $178.3 million in a petition filed in the U.S. Bankruptcy Court for the District of Delaware.

The company has been in default under its secured loans since the beginning of 2009, according to court filings, and negotiations with secured lenders for...
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