Rochester Drug disclosure statement OK’d; plan hearing Feb. 26

By Sarah Lizee

Olympia, Wash., Jan. 19 – Rochester Drug Cooperative, Inc.’s disclosure statement for its Chapter 11 plan was approved on Friday by the U.S. Bankruptcy Court for the Western District of New York.

The plan confirmation hearing has been scheduled for Feb. 26.

The plan is predicated on the sales of the debtor’s assets, the liquidation of remaining assets and the collection of accounts receivable. The plan will be implemented through this process and a liquidating trustee will ultimately make distributions.

The plan contemplates the payment in full in cash of all administrative claims, fee claims, U.S. trustee fees, the IRS priority claim and other priority claims will be paid in full.

Holders of unsecured claims will receive their pro rata share of liquidating trust assets, less the expenses of the liquidating trustee.

Holders of interests will not receive any distribution.

The company is a Rochester, N.Y.-based health care distributor. It filed bankruptcy on March 12, 2020 under Chapter 11 case number 20-20230.

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