LONG BEACH, N.Y., June 4 /PRNewswire-FirstCall/ -- Chem Rx Corporation (Pink Sheets: CHRXQ) ("Chem Rx"), the third largest long-term care pharmacy in the United States, along with certain operating subsidiaries, today announced that it has received final Court approval to utilize its cash collateral to fund its continued operations. Chem Rx continues to maintain normal business operations while it works with its lenders and creditors to reach agreement on a restructuring of the company.
The Court had previously approved the company's ability to pay employee wages, salaries and benefits both before and accruing after its voluntary petitions under Chapter 11, as well as payments to vendors for products and services purchased after the filing date on an interim basis. The Court's June 3, 2010 order authorizes Chem Rx to continue to make these payments on an ongoing basis.
The company is also working with its advisors to explore all forms of transactions, including a sale or other investment, for the long-term financial viability of the company.
"We are pleased that the Court has granted final approval for continued use of our existing cash to operate our business as usual," said Jerry Silva, Chem Rx CEO. "We continue to make progress in our restructuring as we work with our lenders and advisers to determine the best long-term solution for the company's financial challenges. As always, we remain focused on 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.
Susan Stillings or Giovanna Konicke
SOURCE Chem Rx Corporation