Former Chem Rx's disclosure statement OK'd; plan hearing is March 17

By Lisa Kerner

Charlotte, N.C., Feb. 8 - CRC Parent Corp.'s disclosure statement was approved, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A plan confirmation hearing is set for March 17, the filing said

As previously reported, CRC Parent's lender agent Canadian Imperial Bank of Commerce, New York Agency and the company's official committee of unsecured creditors filed a plan of reorganization and related disclosure statement for the former Chem Rx Corp.'s bankruptcy case.

Key to the plan, according to the disclosure statement, is a settlement of committee litigation filed on behalf of the company's estates against CRC's secured lenders and first-lien agent.

Under that settlement, the lenders and agent have agreed to pay priority and other secured claims, to provide a $2 million distribution to holders of general unsecured claims and to waive their lender deficiency claim distribution.

Treatment of creditors will include:

• Holders of priority claims and priority tax claims will be paid in full in cash;

• Holders of other secured claims will receive cash equal to the net proceeds of the sale of the collateral securing their claims or receive the collateral;

• Holders of secured lender claims will receive 100% of available proceeds, beneficial interests in a litigation trust, remaining assets, a share of amounts remaining in a consummation account and any tax refunds;

• Holders of general unsecured claims will receive beneficial interests in the litigation trust. The trust reserve will be funded with $2 million by the lenders;

• Holders of subordinated claims will receive no distribution; and

• Equity interests will be cancelled and extinguished.

CRC was formerly Chem Rx Corp., a Long Beach, N.Y.-based provider of institutional pharmacy services. The company filed for bankruptcy on May 11. Its Chapter 11 case number is 10-11567.

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