Graceway Pharmaceuticals eyes settlement with CVS, Caremark affiliates

By Lisa Kerner

Charlotte, N.C., March 30 - Graceway Pharmaceuticals, LLC and the debtors-in-possession have asked the court to approve a settlement agreement with CVS Caremark Corp., Caremark, LLC and their affiliates, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the proposed settlement, CVS will be allowed an administrative priority claim in the amount of $438,000 and a non-priority unsecured claim of $7 million.

In December 2011 CVS, Caremark and the affiliates filed claims totaling more than $23 million.

A hearing is set for April 11.

As previously reported, Graceway filed its plan in January that calls for liquidation of substantially all of the property of the company's estates.

Under the proposed plan, holders of first-lien facility claims will receive a share of any first-lien available cash, Nycomed litigation proceeds and beneficial interests in a liquidating trust, entitling them to further cash and avoidance action and cause of action proceeds.

The company's disclosure statement was approved on March 1.

Graceway, a Bristol, Tenn.-based pharmaceutical company, filed for bankruptcy on Sept. 29. Its Chapter 11 case number is 11-13036.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.