Court approves Chem Rx's first-day motions, allows normal business operations

May 15 2010

Chem Rx Corporation (Pink Sheets: CHRX) ("Chem Rx"), the third largest long term care pharmacy in the United States, along with certain operating subsidiaries today announced that it has received Court approval for all of its first-day motions, allowing normal business operations, including the purchase and distribution of all drugs and services to its clients.  

The Court also approved on an interim basis Chem Rx's ability to access its cash and use it in its ongoing operations.  This approval allows the company to make payments to vendors for products and services purchased after the filing date of May 11, 2010.  The Court also approved the company's ability to pay employee wages, salaries and benefits both before and accruing after its voluntary petitions under Chapter 11.  

"Today's hearing was an important step in the reorganization process and we are pleased that the Court approved our first day motions," said Jerry Silva, Chem Rx CEO. "This will allow us to operate our business as usual, so that we can keep serving our many clients who rely on the drugs and supplies that we deliver each day for their patients."

SOURCE Chem Rx Corporation