Debtholders Can't Get $40M From US Oncology For Now

Law360, New York (February 24, 2012, 2:13 PM EST) -- A New York state judge refused on Thursday to release $40 million that holders of $775 million in US Oncology Inc. debt say the cancer treatment service provider owes them as part of a $2 billion merger with pharmaceutical distributor McKesson Corp.

The debtholders and US Oncology disagree over language in the debt agreements' early redemption provisions that impacts how much money the debtholders are entitled to receive under the $2.16 billion McKesson deal, which included the assumption of US Oncology's debt.

US Oncology has paid...
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