Chem Rx in violation of three loan covenants

By Sara Rosenberg

New York, April 1 - Chem Rx Corp. was in technical violation of the EBITDA to fixed charges, EBITDA to total debt and capital expenditures covenants under its credit facility as of Dec. 31, according to a news release.

The company is working with its lenders to find a satisfactory solution and continues to make all required interest payments.

Inability to meet the debt covenants was partly blamed on certain charges in the fourth quarter of 2008, including an increase to the allowance for doubtful accounts.

Chem Rx is a Long Beach, N.Y.-based provider of institutional pharmacy services.

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