Rochester Drug distribution center sale bid procedures approved

By Sarah Lizee

Olympia, Wash., June 22 – Rochester Drug Cooperative, Inc. obtained court approval of the bid procedures for the proposed sale of its Fairfield, N.J., distribution facility, according to an order filed Monday with the U.S. Bankruptcy Court for the Western District of New York.

As previously reported, VK Acquisitions V, LLC will serve as the stalking horse bidder, with a $13.5 million offer.

If VK Acquisitions is not ultimately the winning bidder, Rochester Drug will pay it a 2% break-up fee.

Under the proposed procedures, competing bids are due by 4 p.m. ET on July 7 and must exceed the stalking horse bid by the amount of the break-up fee and a $50,000 initial overbid amount.

An auction will be held on July 10, if necessary. Bids at auction must be made in minimum amounts of $50,000.

The company is a Rochester, N.Y.-based health care distributor. It filed bankruptcy on March 12 under Chapter 11 case number 20-20230.

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