Chem Rx gets extension of forbearance through June 26 for two loans

By Sara Rosenberg

New York, June 16 - Chem Rx Corp. extended its forbearance agreement with lenders under its two credit facilities until June 26 from June 15, according to a news release.

The extension of the forbearance is intended to give all parties involved additional time to come to a resolution.

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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