Omnicare, a subsidiary of CVS Health (NYSE: CVS), has initiated voluntary Chapter 11 bankruptcy proceedings in response to litigation challenges and industry-wide financial pressures. The company has secured $110 million in debtor-in-possession financing to maintain operations during the restructuring process.
The bankruptcy filing follows a court ruling in the U.S. District Court for the Southern District of New York regarding alleged technical violations of pharmacy law. Omnicare plans to use this process to evaluate restructuring options, including a potential standalone restructuring or sale strategy. The company emphasizes that it will continue providing uninterrupted pharmacy services to long-term care facilities and maintain regular business operations, including employee wages and vendor payments.
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