Rochester Drug Cooperative receives confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., March 1 – Rochester Drug Cooperative, Inc.’s Chapter 11 plan was confirmed on Friday by the U.S. Bankruptcy Court for the Western District of New York.

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.

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 plan had drawn an objection from Region 2 U.S. trustee William K. Harrington, but the objection was overruled by the court. Harrington had said the debtor failed to meet its burden of proof to show that the plan meets the statutory requirement of section 1129 of the Bankruptcy Code.

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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