CVS’s Omnicare Files Bankruptcy After $949 Million Judgment
(Bloomberg) -CVS Health Corp. Omnicare Inc., a subsidiary, applied for a bankruptcy after the payment of $ 949 million in their allegations that the pharmacy services provider was distributed in an inappropriate way to long -term care.
Omnicare and some subsidiaries listed the obligations between 1 billion and 10 billion dollars in the court protection and department 11 petitions that list at least $ 100 million assets in Texas on Monday. Although the $ 949 million civilian judiciary is challenging the company, Omnicare is listed as the largest unsecured debt.
The company earned $ 110 million in financing $ 110 million to finance its activities and bankruptcy. The company, which will continue to produce from operations, will continue to produce, “Omnicare will provide sufficient liquidity to fulfill its ongoing work obligations during the supervised process,” he said.
OminCare said that the file of Chapter 11 will give time to solve the decision and to evaluate the options to “address other financial challenges faced by the larger long -term care pharmacy industry” options. The company said it could restructure its business independently or sell it.
After failing to reach an agreement with the government officials, the company asked for a court protection.
Omnicare said that long -term care facilities are under financial pressure due to economic tendencies that adversely affect operators. These include a boring labor market, falling repayment rates and a general decrease in the use of long -term care facilities in the midst of a shift on outpatient treatment.
According to the court documents, a handful of Omnicare customer operating long -term maintenance facilities, Genesis Healthcare, Petersen Health and Lavie Care Centers, including the last few years, has applied to 11 years. Frank, Omnicare’in previous three bankruptcies made an unsecured claim of approximately 50 million dollars, and this leads to the loss of income and bad account receivables and only Lavie continues to be a customer, he said.
Bankruptcy Filing Files, Bloomberg News to help Omnicare’s cash flow and operations Alvarez & Marsal Inc. It comes weeks after notifying that it works with. Filing 11. Chapter will probably pause the government’s efforts to make decisions.
In August, a Federal Judge rejected Omnicare and the CVS request to break the decision after an earlier jury hearing. In 2015, an former Omnicare Pharmacist in New Mexico imposed a notice proceedings against the company and the government intervened in the case in 2019.
Omnicare said that the company “its customers and long -term maintenance residents are completely focused on meeting pharmacy needs” and will continue to provide safe and reliable services to long -term care facilities. Customers and patients may expect to continue to access pharmacy and clinical services without interruption, ”he said.
The case is Omnicare LLC at the Northern Region of Texas in the US bankruptcy court 25-80486.
(Updates made by the court file of Omnicare Cro, which started in the fifth paragraph.)
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