New England Compounding Center Files for Chapter 11 Bankruptcy Protection, Seeks to Establish Fund to Compensate those Affected by Meningitis Outbreak

Fri Dec 21, 2012 6:01pm EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121221:nBw216045a

FRAMINGHAM, Mass.--(Business Wire)--
New England Compounding Center announced today that the company has filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. The filing, which was
made in the United States Bankruptcy Court for the District of Massachusetts,
seeks to establish a fund to compensate individuals and families affected by a
nationwide meningitis outbreak. In papers filed with the court, the company said
its goal is to provide a greater, quicker, fairer payout to its creditors than
they could achieve through piecemeal litigation. 

The company also announced the appointment of Keith D. Lowey as Independent
Director of NECC and as the company`s Chief Restructuring Officer. Mr. Lowey
will be responsible for NECC`s effort to establish the Compensation Fund and
commence payments to affected parties. 

"This will be a cooperative effort," said Lowey, who is a Principal in the
Financial Consulting firm Verdolino & Lowey. "We want to assemble a substantial
fund, and then distribute it fairly and efficiently to those who are entitled to
relief." 

Lowey said that NECC seeks to forge a consensual, comprehensive resolution of
claims which will be funded by agreements reached among the claimants, the
Company, its insurers and other parties with potential liability for the
meningitis cases. All such claims will be addressed in U.S. Bankruptcy court. 

Mr. Lowey will be in charge of NECC`s conduct of the Chapter 11 case and its
effort to work cooperatively with those impacted by the meningitis outbreak. 

"We want to confirm the Chapter 11 plan establishing the Compensation Fund as
soon as possible," Lowey said. 

To accomplish this goal, NECC`s bankruptcy counsel, Daniel Cohn of Murtha
Cullina LLP, emphasized that claimants and their lawyers will be actively
involved. "We expect that a committee of meningitis claimants will be appointed
to represent the entire group," said Cohn. "That will help assure that an
appropriate amount will be collected and contributed to the Compensation Fund,
and that the money will be distributed fairly." 

"Many families across the U.S. have been impacted by this great tragedy, and it
is difficult to comprehend the sense of loss so many people have experienced.
Everyone associated with New England Compounding Center shares that sense of
loss," Lowey said. "We recognize the need to compensate those affected by the
meningitis outbreak fairly and appropriately. We hope that by establishing this
Fund under Chapter 11 of the U.S. Bankruptcy Code, those families impacted by
this tragedy may be compensated as quickly as is possible."

O'Neill and Associates
Krista Robinson, 617-646-1066
contact@oneillandassoc.com



Copyright Business Wire 2012
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.