Able Laboratories asks court to protect net operating losses by restricting trading

New York, Aug. 2 - Able Laboratories, Inc. said it has asked the U.S. Bankruptcy Court for the District of New Jersey to protect its net operating loss carry-forward by restricting trading in its securities.

The Cranbury, N.J., pharmaceutical company said it expects to use "a substantial portion" of its net operating losses in the future to reduce its federal income tax liability. The request will preserve the carry forward.

Under the proposed restrictions, owners of its stock who currently hold less than 5% will be barred from increasing their holdings above 4.99% while those who already own 5% or more will not be allowed to buy any more.

In addition, anyone looking to trade a general unsecured claim must give notice before the transaction.

If the court approves the request, any sales that violate the procedures will be void.

Able filed for Chapter 11 on July 18. Its case number is 05-33129.

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