Chem Rx Corporation Enters Short-Term Forbearance Agreements With Lenders
As previously announced, the Company was in technical violation of three financial covenants under its credit facilities and has not paid its default interest. The covenants require the Company to maintain specified ratios of earnings before interest, taxes, depreciation and amortization (EBITDA) to fixed charges and total debt, and restrict the amount of capital expenditures. The lenders have agreed to forbear from exercising their remedies based on these defaults and any potential defaults related thereto. Chem Rx has not filed its Form 10-K for the year ended
About Chem Rx Corporation
Founded more than 40 years ago, Chem Rx is a major institutional pharmacy serving the
Forward Looking Statements
Certain statements within this press release may be “forward-looking“ within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Chem Rx’s management and are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: an ability to reach agreement with lenders to resolve current violations under credit agreements; difficulties in compliance with government regulations; changes in legislation or regulatory environments; requirements or changes adversely affecting the health care industry, including changes in Medicare reimbursement policies; fluctuations in customer demand; management of rapid growth; intensity of competition; timing, approval and market acceptance of new product introductions and institutional pharmacy locations; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in Chem Rx Corporation‘s filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Chem Rx Corporation does not assume any obligation to update the information contained in this press release.
Contacts: Gary M. Jacobs Chief Financial Officer Chem Rx Corporation 516-889-8770 Amy Glynn/Ashleigh Barreto The Ruth Group 646-536-7023 / 7028 firstname.lastname@example.org email@example.com
SOURCE Chem Rx Corporation