Chem Rx gets forbearance agreement through June 15 for two loans

By Sara Rosenberg

New York, May 1 - Chem Rx Corp. signed a 45-day forbearance agreement with lenders under its two credit facilities that is in effect through June 15, according to a news release.

During the forbearance period, the company plans on continuing negotiations for waivers or amendments to the facilities.

As previously announced, the company was in technical violation of three financial covenants under its credit facilities and has not paid its default interest - but all required principal and non-default interest payments have been made.

Covenants that were breached include ratios of EBITDA to fixed charges and total debt, and capital expenditures restrictions.

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

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