Chem Rx Receives Court Approval of First-Day Orders, Allows Normal Business Operations
LONG BEACH, N.Y., May 14 Chem Rx Corporation (Pink Sheets: CHRX) ("Chem Rx"), the third largest long term care pharmacy in the United States, along with certain operating subsidiaries today announced that it has received Court approval for all of its first-day motions, allowing normal business operations, including the purchase and distribution of all drugs and services to its clients.
The Court also approved on an interim basis Chem Rx's ability to access its cash and use it in its ongoing operations. This approval allows the company to make payments to vendors for products and services purchased after the filing date of May 11, 2010. The Court also approved the company's ability to pay employee wages, salaries and benefits both before and accruing after its voluntary petitions under Chapter 11.
"Today's hearing was an important step in the reorganization process and we are pleased that the Court approved our first day motions," said Jerry Silva, Chem Rx CEO. "This will allow us to operate our business as usual, so that we can keep serving our many clients who rely on the drugs and supplies that we deliver each day for their patients."
About Chem Rx
Founded more than 40 years ago, Chem Rx is a major institutional pharmacy serving the New York City metropolitan area, as well as parts of New Jersey, upstate New York, Pennsylvania and Florida. Chem Rx's client base includes skilled nursing facilities and a wide range of other long-term care facilities. Chem Rx annually provides over six million prescriptions to over 69,000 residents of more than 400 institutional facilities. Chem Rx's website address is www.chemrx.net.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Chem Rx Corporation. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Chem Rx's management and are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: compliance with government regulations; changes in legislation or regulatory environments; requirements or changes adversely affecting the health care industry, including changes in Medicare reimbursement policies; fluctuations in customer demand; management of rapid growth; intensity of competition; timing, approval and market acceptance of new product introductions and institutional pharmacy locations; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Chem Rx Corporation's filings with the SEC. The information set forth herein should be read in light of such risks. Chem Rx Corporation does not assume any obligation to update the information contained in this press release.
Press Contacts Susan Stillings or Giovanna Konicke Brunswick Group (212) 333-3810
SOURCE Chem Rx Corporation
You May Also Like