Able Laboratories files plan of reorganization; unsecured creditors to recover 27% in available cash

By Caroline Salls

Pittsburgh, Feb. 28 - Able Laboratories, Inc. filed its plan of reorganization and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of New Jersey, under which unsecured creditors will share in the company's available cash.

Under the plan, the company will continue its product recall, ensure compliance with all FDA regulations and procedures, wind up its affairs and liquidate any remaining assets of its estate.

The plan will be funded from the proceeds of the sale of the company, the collection of outstanding receivables, other miscellaneous assets not sold and from litigation trust proceeds.

Treatment of creditors under the plan will include:

• Holders of secured claims will receive 100% recovery in either cash, the net proceeds of the sale of the collateral securing the claim or the collateral securing the claim, at the company's option;

• Holders of general unsecured claims will receive about 27% recovery in their share of the class 3 cash pool, which will be funded by available cash;

• Holders of subordinated claims will receive no distribution unless the general unsecured claims class is paid in full; and

• Equity holders will receive no distribution unless the general unsecured claims and subordinated claims classes are paid in full.

Able is a Cranbury, N.J., developer and manufacturer of general pharmaceuticals. The company filed for bankruptcy on July 11, 2005. Its Chapter 11 case number is 05-33129.

© 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.