Attached files
| file | filename |
|---|---|
| 8-K - CHEM RX CORP | v184590_8k.htm |
Exhibit
99.1
CHEM
RX FILES CHAPTER 11 TO FACILITATE REORGANIZATION
Long
Beach, NY, May 11, 2010 – Chem Rx Corporation (Pink Sheets: CHRX.PK),
the third largest long term care pharmacy in the United States, along with
certain operating subsidiaries today announced that it has filed voluntary
petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This
process will provide the most effective way for Chem Rx Corporation (“Chem Rx”)
to preserve the value of the company for all stakeholders, including employees,
and maintain normal business operations while it works with its lenders to reach
agreement on a restructuring of the company.
“Over the
past 40 years, we have won our clients’ loyalty by providing them with the drugs
and supplies they need accurately, on time and at competitive prices,” said
Jerry Silva, Chem Rx CEO. “This restructuring process will provide us with the
court protection necessary to ensure that Chem Rx continues to provide these
services. We expect to reach an agreement with our lenders that will allow us to
facilitate a reorganization and position us strongly for the
future.”
Chem Rx’s
management team led by Jerry Silva, CEO, and Steve Silva, president and COO,
will continue to be responsible for the day-to-day operations of the company.
Chem Rx has engaged investment banker Lazard Middle Market LLC to help it
facilitate a restructuring of the company.
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