NECC files for bankruptcy under Chapter 11
The New England Compounding Pharmacy, Inc., which does business as the New England Compounding Center (NECC), filed for bankruptcy protection under Chapter 11 of the Bankruptcy code on December 21 in the U.S. Bankruptcy Court for the District of Massachusetts Eastern Division.
NECC, Framingham, Mass., recalled contaminated steroid products in early October, which were associated with a multistate fungal meningitis outbreak that has sickened more than 600 patients and claimed the lives of 39, according to the Centers for Disease Control and Prevention. NECC closed its facility later in October.
More than 100 lawsuits have been filed and more are anticipated following this tragedy, according to the court documents.
Under Chapter 11, NECC plans to establish a compensation fund for the meningitis cases, and Keith D. Lowey of Verdolino & Lowey, P.C. has been appointed as the independent director and chief restructuring officer with authority to handle all personal injury claims and the NECC's conduct, the documents state.
"The company's goal is to provide a greater, quicker, fairer, and less expensive payout to its creditors than they could achieve through piecemeal litigation," the documents state.
NECC has until January 21, 2013 to file its schedule of assets and liabilities and statement of financial affairs.
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