5th Circuit: Judgment Stands; Company Owner Liable Under Alter-Ego Theory

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on June 15 ruled that a personal injury judgment against the owner of a company that filed for Chapter 11 bankruptcy was valid because the individual was the alter ego of the company ( Abraham Flores v. Lorance W. Bodden, No. 11-40557,...

Property Damage Claimant In Grace Bankruptcy Denied Relief From Confirmation Order

WILMINGTON, Del. - A recent court ruling that further defines when a claim arises in bankruptcy does not constitute an exceptional circumstance warranting relief from confirmation of W.R. Grace & Co.'s Chapter 11 reorganization plan sought by a property damage claimant, a federal judge in Delaware...

Pharmaceutical Maker Quigley: Reorganization Plan Voting Should Be Extended

NEW YORK - Bankrupt pharmaceutical maker Quigley Co. Inc., a subsidiary of Pfizer Inc., on Nov. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for an extension of the voting deadline to approve its reorganization plan until the end of the month (In Re: Quigley Company Inc...

K-V Discovery Solutions Seeks Approval Of $60M Settlement With Hologic Inc.

NEW YORK - Bankrupt pharmaceutical company K-V Discovery Solutions Inc. on Dec. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a $60 million settlement with Hologic Inc. that would dispose of Hologic's claims, which are valued at $95 million (In Re: K-V...

K-V Discovery Solutions Seeks Approval Of $85M Loan To Pay Settlement, Costs

NEW YORK - Bankrupt pharmaceutical firm K-V Discovery Solutions Inc. on Dec. 11 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of an $85 million deal for post-petition financing, which the company says will enable it to emerge from Chapter 11 bankruptcy (In Re:...

Commission: Changes Needed Due To Meningitis Outbreak Caused By Bankrupt Pharmacy

BOSTON - A special commission appointed by Massachusetts Gov. Deval Patrick on Jan. 4 proposed recommendations for the oversight of compounding pharmacies in the wake of a fungal meningitis outbreak linked to a drug distributed by New England Compounding Center (NECC), which subsequently was forced into...

U.S. Trustee Objects To NECC's Choice Of Financial Adviser; Party Not Disinterested

BOSTON - The U.S. trustee in the Chapter 11 bankruptcy of New England Compounding Center (NECC), the pharmacy that was forced into bankruptcy as a result of a fungal meningitis outbreak related to a drug that NECC distributed, filed a brief on Jan. 8 objecting to its application to employ certain financial...

Bankrupt K-V Pharmaceuticals Proposes Reorganization Plan, $20M Rights Offering

NEW YORK - Bankrupt pharmaceutical company K-V Discovery Solutions Inc. on Jan 7 moved in the U.S. Bankruptcy Court for the Southern District of New York, seeking approval to solicit votes for its Chapter 11 plan of reorganization (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N...

Steroid Plaintiffs Seek To Freeze $21M Paid Out By Compounding Pharmacy

BOSTON - A Massachusetts bankruptcy judge on Jan. 23 scheduled a hearing on an emergency motion by unsecured creditors to try to freeze $21 million the creditors say was transferred in the past year to insiders of New England Compounding Pharmacy Inc. (NECP), the company at the center of a fungal meningitis...

Creditors' Committee Seeks To Delay Hearing On K-V Discovery's Reorganization Plan

NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of pharmaceutical company K-V Discovery Solutions Inc. on Feb. 28 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order adjourning the hearing to consider the company's disclosure...

Lenders In K-V Discovery Case: Disclosure Proper; Reorganization Should Proceed

NEW YORK - The post-petition lenders and a group of senior noteholders in the Chapter 11 bankruptcy of pharmaceutical company K-V Discovery Solutions Inc. on April 25 filed a brief arguing that the bankruptcy court should approve their disclosure statement for the reorganization plan because it complies...

Meningitis Outbreak MDL Judge Centralizes Most Injury Cases In Bankruptcy Court

BOSTON - All federal and state personal injury and wrongful death lawsuits against New England Compounding Pharmacy and related entities and persons on May 31 were ordered transferred into a federal bankruptcy court, but state court cases that don't name the bankrupt defendant can stay where they...

Bankruptcy Judge Rejects Barclays' Fee Enhancement For Work On ASARCO Case

CORPUS CHRISTI, Texas - Barclays Capital Inc. was adequately compensated for the 14 months of financial advisory services it provided in ASARCO LLC's bankruptcy case and is not entitled to a fee enhancement because Barclays should have anticipated the complicated developments in the case when it...

Bankruptcy Judge OKs $3M Deal To Settle K-V Discovery Overpricing Claims

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of pharmaceutical company K-V Discovery Solutions Inc. on June 20 granted a motion by bankrupt K-V and approved a $3 million settlement between the company and the State of Texas pertaining to alleged overpricing of medication...

3rd Circuit Rejects Garlock's Appeal Of Grace's Plan For Lack Of Injury, Standing

PHILADELPHIA - Chapter 11 debtor Garlock Sealing Technologies Inc. does not have standing to object to fellow debtor W.R. Grace & Co.'s confirmed plan of reorganization because Garlock cannot show that it will be harmed by the plan, the Third Circuit U.S. Court of Appeals held July 24 (In re...

Insurers: K-V Discovery's Reorganization Plan Should Not Be Confirmed

NEW YORK - A group of insurance companies that are creditors in the Chapter 11 bankruptcy of pharmaceutical company K-V Discovery Solutions Inc. on Aug. 19 filed a brief arguing that the company's reorganization plan should not be confirmed because it may jeopardize their claims (In Re: K-V Discovery...

Kodak Seeks OK Of Deal In Which It Would Retain 15 Of 18 Disputed Patents

NEW YORK - Bankrupt Eastman Kodak Co. on Aug. 26 moved in bankruptcy court for approval of a settlement agreement with Global OLED Technology (GOT) LLC under which Kodak would retain 15 of 18 disputed patents related to Organic Light Emitting Diodes (OLEDs) (In Re: Eastman Kodak Company, No. 12-10202...

Bankrupt K-V Discovery Reaches $23.8M Settlement With States, Federal Government

NEW YORK - Bankrupt pharmaceutical company K-V Discovery Solutions Inc. on Aug. 28 reached an agreement under which it will pay the United States and certain states asserting Medicaid claims $23.8 million to settle criminal fines and claims made against the bankruptcy estate (In Re: K-V Discovery Solutions...

Judgment Entered Against Garlock After W.R. Grace Appeal Rehearing Denied

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Sept. 13 entered final judgment against Chapter 11 debtor Garlock Sealing Technologies LLC in Garlock's appeal of confirmation of fellow debtor W.R. Grace & Co.'s plan of reorganization after denying Garlock's request for rehearing...

Judge Again Finds Dow Breast Implant Settlement Includes Tissue Expanders

DETROIT - On remand from a federal appeals court, the judge overseeing the Dow Corning silicone breast implant settlement on Oct. 8 affirmed her four-year-old ruling that breast tissue expanders are covered by the settlement (In Re: Settlement Facility Dow Corning Trust, No. 00-00005, E.D. Mich., S....

Savient Pharmaceuticals Files For Chapter 11 Bankruptcy, Gets Cash Management OK

WILMINGTON, Del. - The federal bankruptcy judge in Delaware presiding over the Chapter 11 case of Savient Pharmaceuticals Inc. on Oct. 17 gave the company approval to use a cash management system in conducting its bankruptcy proceeding (In Re: Savient Pharmaceuticals Inc., No. 13-12680, Chapter 11, D...

Bankrupt Rotech Healthcare: Counsel For Equity Committee Not Entitled To Any Fees

WILMINGTON, Del. - The reorganized version of bankrupt Rotech Healthcare Inc. on Nov. 12 filed a brief objecting to the $851,105.20 fee application of the law firm that represented the Official Committee of Equity Security Interest Holders, arguing that the firm did not provide value to the bankruptcy...

Committee: Savient Seeking 'Inappropriate Concessions' With Its Cash Collateral

WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Savient Pharmaceuticals Inc. on Nov. 25 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Savient's motion seeking approval to use cash collateral (In re: Savient...

Law Firm: Bankrupt Rotech Healthcare Not Allowed To Depose Its Attorneys

WILMINGTON, Del. - The law firm that represented the Official Committee of Equity Security Interest Holders in the Chapter 11 bankruptcy of Rotech Healthcare Inc. on Dec. 13 moved for a protective order, contending that Rotech should not be permitted to depose members of the firm (In Re: Rotech Healthcare...

Savient Pharmaceuticals Seeks Bankruptcy Court OK For Deal Allowing $2.06M Claim

WILMINGTON, Del. - Bankrupt Savient Pharmaceuticals Inc. on Dec. 18 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of a global settlement agreement that would allow its landlord to assert a claim against the bankruptcy estate for $2,062,000 in exchange for an agreement to...