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UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MASSACHUSETTSEASTERN DIVISION
____________________________________
)
In re: ))
NEW ENGLAND COMPOUNDING ) CHAPTER 11PHARMACY, INC., ) CASE NO. 12-19882-HJB
)
Debtor. )____________________________________)
MOTION OF DEBTOR AND DEBTOR-IN-POSSESSION TO EXTEND THE TIME
TO FILE SCHEDULES, STATEMENT OF FINANCIAL AFFAIRS
AND RELATED DOCUMENTS
(REQUEST FOR EXPEDIT ED CONSIDER ATION)
New England Compounding Pharmacy, Inc., the debtor and debtor in possession (the
Company) in the above-captioned chapter 11 case (the Chapter 11 Case), hereby submits
this motion (the Motion) for the entry of an order, substantially in the form attached hereto,
granting the Company an extension through and including January 21, 2013, of the time to file
its schedules of assets and liabilities and statement of financial affairs (collectively, the
Schedules), pursuant to 11 U.S.C. 1116(3). Pursuant to MLBR 9013-1(g), the Company
respectfully requests that this Court make an expedited determination with respect to this
Motion. In support of this Motion, the Company respectfully states as follows:
Background
1. On December 21, 2012, the Company filed a voluntary petition for relief under
chapter 11 of the Bankruptcy Code (the Petition Date).
2. The Company continues to own and manage its assets as a debtor-in-possession
pursuant to 1107(a) and 1108 of the Bankruptcy Code.
3. To date, no trustee, examiner, creditors committee, or other official committee
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has been appointed in the Companys Chapter 11 Case.
4. The Company is a compounding pharmacy which combines ingredients to create
specific formulations of pharmaceutical products. Prior to the Petition Date, numerous
individuals across the country were stricken with fungal meningitis attributed to contaminated
products distributed by the Company. In early October, NECC initiated a nationwide recall of
potentially contaminated product and, in cooperation with regulatory authorities, ceased
operation. More than 100 lawsuits have been filed and hundreds more are expected in
connection with this tragic occurrence.
5.
Through this Chapter 11 case, NECC seeks to forge a consensual, comprehensive
resolution of these claims in the form of a Chapter 11 plan establishing a compensation fund for
meningitis claimants based on agreements to be reached among them, the Company, its insurers
and other parties with potential liability for the meningitis cases. To spearhead this effort, the
directors and shareholders appointed Keith D. Lowey of Verdolino & Lowey, P.C. as
independent director and chief restructuring officer with plenary and exclusive authority over
matters related to personal injury claims and the Companys conduct of this Chapter 11 case.
The Companys goal is to provide a greater, quicker, fairer and less expensive payout to its
creditors than they could achieve through piecemeal litigation.
Jurisdiction
6. This Court has subject matter jurisdiction to consider this matter pursuant to 28
U.S.C. 1334. This is a core proceeding pursuant to 28 U.S.C. 157(b). Venue is proper
before this Court pursuant to 28 U.S.C. 1408 and 1409.
7. The statutory bases for the relief requested herein are 105(a) and 521(a)(1)(B)
of the Bankruptcy Code, Rule 1007(c) of the Federal Rules of Bankruptcy Procedure (the
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Bankruptcy Rules), and Rule 1007(h) of the Local Bankruptcy Rules of the United States
Bankruptcy Court for the District of Massachusetts.
Relief Requested
8. Pursuant to Bankruptcy Code 521 and Bankruptcy Rules 1007(a) and (c), thedeadline to file the Schedules is January 4, 2012. The Company respectfully requests that this
Court enter an Order, on an expedited basis, extending the deadline for the filing of the
Schedules through and including January 21, 2013.
Basis for Relief
9.
Section 1116(3) of the Bankruptcy Code and Bankruptcy Rule 1007(c) gives this
Court the power to extend the deadline for filing the Companys Schedules to a date no later than
30 days after the date of the order for relief, for cause shown. As demonstrated below, ample
cause exists to grant the extension requested herein.
10. Preparation of complete and accurate Schedules will require, among other things,
appropriate personnel to gather, review and analyze a substantial amount of information and to
populate the appropriate Bankruptcy Forms with such information. This is a time-intensive
process and to date, the Companys attentions have been focused on preparing and filing this
Chapter 11 case, the numerous civil actions outstanding in multiple jurisdictions across the
nation, ongoing regulatory inquiries and investigations, coordinating efforts pertaining to the
recall of certain of the Companys products, as well as liaising with the U.S. Trustees office,
their bankruptcy professionals and other counsel. Furthermore, since the Company ceased
operations in or about October 2012, the Company has drastically reduced its employment ranks
to a minimum number of personnel. Accordingly, the Company has not yet been able to
complete the Schedules and will not have the time or the resources to do so prior to the current
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deadline.
11. The Bankruptcy Code 341 meeting of creditors has not yet been scheduled, and
a deadline for filing proofs of claim has not yet been set. The U.S. Trustee and all other parties
in interest will have ample opportunity to review the Schedules well in advance of both of these
events, notwithstanding the extension of the deadline as requested in this Motion. As such, no
prejudice will inure to any interested party as a result of granting the relief requested herein. For
these reasons, good cause exists to extend the deadline for filing the Schedules through and
including January 21, 2013.
Request for Expedited Consideration
11. Pursuant to MLBR 9013-1(g), the Court may consider this Motion on an
expedited basis where exigent circumstances are present justifying such relief. Such exigencies
are present given that the standard deadline under MLBR 1007-1 for the filing of certain
documents for which the Company seeks an extension of the deadline is prior to the time that
this Motion could be heard absent expedited consideration. Accordingly, the Company
respectfully requests the entry of the Order, in substantially the form affixed hereto, granting the
relief sought in this Motion.
Notice
12. The Company has served a copy of this Motion by the Courts ECF System,
facsimile, overnight courier and/or electronic mail on (a) the Companys 20 largest unsecured
creditors as identified in the list accompanying its petition, (b) the Office of the United States
Trustee, and (c) all parties who have filed a notice of appearance in this case. In light of the
relief requested herein, the Company submits that no other or further notice is required. No
request for the relief sought herein has been made to any other Court.
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WHEREFORE, the Company respectfully requests that this Court enter an Order: (i)
granting this Motion; (ii) extending the deadline by which the Company must file its Schedules
through and including January 21, 2013; and (iii) granting such other and further relief in favor
of the Company as the Court deems just and proper.
Respectfully submitted,
NEW ENGLAND COMPOUNDING PHARMACY,INC.,
By its attorneys,
/s/ Keri L. Wintle
Daniel C. Cohn, Esq. BBO #090780Keri L. Wintle, Esq. BBO #676508Murtha Cullina LLP
99 High Street, 20th
Floor
Boston, MA 02110(617) 457-4000 Telephone
(617) 482-3868 Facsimile
Dated: December 21, 2012 [email protected]
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UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MASSACHUSETTSEASTERN DIVISION
____________________________________
)
In re: ))
NEW ENGLAND COMPOUNDING ) CHAPTER 11PHARMACY, INC., ) CASE NO. 12-19882-HJB
)
Debtor. )____________________________________)
ORDER GRANTING MOTION OF DEBTOR TO EXTEND THE TIME
TO FILE SCHEDULES, STATEMENT OF FINANCIAL AFFAIRS
AND RELATED DOCUMENTS
Upon the Motion (the Motion)1
of New England Compounding Pharmacy, Inc., as
debtor and debtor-in-possession (the Company), for the entry of an Order extending the time
for the Company to file its Schedules, Statement of Financial Affairs and Related Documents,
and this Court possessing the jurisdiction to consider the Motion, and venue lying appropriately
with this Court, and notice of the Motion having been sufficient under the circumstances, and
having reviewed the Motion and all papers related thereto heretofore filed, and the relief
requested in the Motion being warranted, IT IS HEREBY ORDERED THAT:
13. The Motion is GRANTED.
14. The deadline for the Company to file its Schedules is hereby extended through
and including January 21, 2013 without prejudice to the Companys ability to seek further
extensions.
15. This Order shall take effect immediately upon its entry notwithstanding any
Bankruptcy Rule or other provision to the contrary.
1Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the
Motion.
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16. This Court shall retain jurisdiction to consider all matters arising from and/or
related to the interpretation and/or implementation of this Order.
Dated: December ____, 2012
Boston, MA
________________________________________________UNITED STATES BANKRUPTCY JUDGE
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