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Published on 6/14/2013 in the Prospect News Distressed Debt Daily.

Liberty Medical eyes 54-day exclusivity extension to resolve issues

By Caroline Salls

Pittsburgh, June 14 - Liberty Medical Supply, Inc. requested a 54-day extension of its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive plan-filing period through Aug. 8 from June 15 and the solicitation period through Oct. 7 from Aug. 14.

According to the motion, Liberty Medical is only beginning to implement operations improvements necessary to achieve its business plan. The company said it also plans to implement new accounting and financial systems crucial to its ability to fully assess its revised business plan and to the feasibility of a reorganization plan.

The company said it will also try to resolve a dispute related to recoupment claims and will use the extended exclusive periods to investigate potential claims against Medco and to make progress in civil litigation.

Liberty Medical said it expects a further extension will be needed to fully resolve these critical issues, but its official committee of unsecured creditors only agreed to the proposed extension.

A hearing is scheduled for July 10.

Liberty Medical, a Port St. Lucie, Fla.-based health-care products home delivery provider, filed for bankruptcy on Feb. 15. The Chapter 11 case number is 13-10262.


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