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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 FOR THE ENTRY OF AN
ORDER WAIVING REQUIREMENT TO FILE CREDITORS MATRIX
( REQUEST FOR EMERGENCY DETERMINATION )
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,
pursuant to §§ 105, 342(a) and 521(a)(1) of title 11 of the United States Code (11 U.S.C. §§ 101
et. seq. as amended, the “Bankruptcy Code”) and Fed. R. Bankr. P. 1007(a) and 2002(a) and (f),
waiving the requirement that the Company file a creditors matrix. Pursuant to MLBR 9013-1(g),
the Company respectfully requests that this Court make an emergency determination with respect
to this Motion. This Motion is being filed contemporaneously with the Company’s Application
To Retain Donlin, Recano & Co., Inc. (“DRC”) as Claims, Noticing and Balloting Agent (the
“DRC Retention Application”). Granting of the DRC Retention Application would obviate the
need for the Company to file a matrix. The Motion requires an emergency hearing because of
the requirement in MLBR 1007-1 that a matrix be filed within three days. 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
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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
has been appointed in the Company’s Chapter 11 Case.
4. Contemporaneously herewith, the Company is filing the DRC Retention
Application. If approved, the Company intends to utilize DRC, among other things, to handle
service of many, if not all, notices in this Chapter 11 Case, including without limitation the
Company’s notice of commencement and 11 U.S.C. § 341 meeting, the bar date notice, and
notices in connection with the disclosure statement and plan. In connection with this process, the
Company has been providing and continues to supply DRC with the contact information that it
will need to accomplish effective service of the various filings in this Chapter 11 Case.
5. 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 that 100 lawsuits have been filed and hundreds more are expected in connection
with this tragic occurrence.
6. 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
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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 Company’s conduct of this Chapter 11 case.
The Company’s goal is to provide a greater, quicker, fairer and less expensive payout to its
creditors than they could achieve through piecemeal litigation.
Jurisdiction
7. 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.
8. The statutory bases for the relief requested herein are §§ 105(a), 342(a) and
521(a)(1) of the Bankruptcy Code and Rules 1007(a) and 2002(a) and (f) of the Federal Rules of
Bankruptcy Procedure (the “Bankruptcy Rules”).
Relief Requested
9. The Company requests, pursuant to § 105(a) of the Bankruptcy Code, entry of an
Order waiving the requirement of MLBR 1007-1(a), that it file a creditors matrix within three
days of the Petition Date.
Basis for Relief
10. The Company is filing the DRC Retention Application pursuant to 28 U.S.C. §
156(c), which empowers the Court to use outside facilities or services pertaining to the provision
of notices and other administrative information to parties in interest provided that the costs are
paid from the assets of the estate. The Company is furnishing its list of creditors (with contact
information) to DRC so that DRC may mail the Notice of Commencement, § 341 Meeting
Notice, Bar Date Notice and other documents to the entire matrix as appropriate.
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11. Given that DRC will receive a copy of the comprehensive creditors list and will
use that information to furnish the creditors with omnibus mailings in this Chapter 11 Case,
filing a creditors matrix will serve no useful purpose. DRC, acting as noticing agent of the
Company, will ensure that all creditors will receive prompt notice of, among other events and
filings, the commencement of this Chapter 11 Case. As a result, the matrix filing requirement of
Local Rule 1007-1 should be waived.
12. Section 105(a) of the Bankruptcy Code empowers the Court to “issue any order,
process, or judgment that is necessary or appropriate to carry out the provisions” of the
Bankruptcy Code. 11 U.S.C. § 105(a). Having DRC, rather than the Clerk of this Court, serve
the Notice of Commencement and other filings in this Chapter 11 Case is appropriate and is
within this Court’s equitable powers under § 105(a). Finally, the relief requested in this Motion
is beneficial to the Company’s estate and creditors because it will result in actual notice to all of
the Company’s creditors, in an efficient and cost-effective manner.
Emergency Consideration is Warranted
13. Pursuant to MLBR 9013-1(g), the Court may consider this Motion on an
emergency basis where exigent circumstances are present justifying such relief. These
circumstances are present here because the regular deadline for filing the creditor’s matrix, as set
forth in MLBR 1007-1, occurs prior to the passage of the standard notice period applicable to
this Motion.
Notice
14. The Company has served a copy of this Motion by the Court’s ECF System,
facsimile, overnight courier and/or electronic mail on (a) the 20 largest unsecured creditors as
identified in the Company’s petition, and (b) the Office of the United States Trustee. In light of
the relief requested herein, the Company submits that no other or further notice is required.
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15. No request for the relief sought herein has been made to any other Court.
WHEREFORE, the Company respectfully requests the entry of an Order (a) granting the
relief requested in this Motion; (b) waiving the requirement that Company file a creditors matrix
in this Chapter 11 Case; and (c) granting such other and further relief as the Court deems just and
proper.
Respectfully submitted,
NEW ENGLAND COMPOUNDING
PHARMACY, INC.,
By its attorneys,
/s/ Daniel C. CohnDaniel C. Cohn, Esq. BBO #090780
Keri L. Wintle, Esq. BBO #676508
Murtha Cullina LLP99 High Street, 20th Floor
Boston, MA 02110
(617) 457-4000 Telephone
(617) 482-3868 [email protected]
Dated: December 21, 2012 [email protected]
Proposed Counsel to New England Compounding
Pharmacy, Inc.
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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 EMERGENCY MOTION OF DEBTOR FOR THE ENTRY OF
AN ORDER WAIVING REQUIREMENT TO FILE CREDITORS MATRIX
UPON THE EMERGENCY MOTION (the “Motion”)
1
of the above-captioned debtor and
debtor-in-possession (the “Company”), pursuant to §§ 105, 342(a) and 521(a)(1) of the
Bankruptcy Code and Fed. R. Bankr. P. 1007(a) and 2002(a) and (f), for an Order waiving the
requirement to file a creditors matrix, and this Court possessing jurisdiction to consider the
Motion, and venue lying appropriately with this Court, and notice of the Motion having been
sufficient, and having considered the Motion and all papers related thereto heretofore filed, and
the relief requested in the Motion being warranted, IT IS HEREBY ORDERED THAT:
1. The Motion is GRANTED.
2. The Company is hereby RELIEVED from the requirement imposed by the
Bankruptcy Rules and/or the Local Rules of filing a creditors matrix upon the docket being
maintained by the Clerk of Court in this Chapter 11 Case.
3. This Order shall take effect immediately upon its entry notwithstanding any
Bankruptcy Rule, Local 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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4. This Court shall retain jurisdiction over all matters arising from and/or related to
the interpretation and/or implementation of this Order.
Dated: December ___, 2012Boston, MA
__________________________________________
UNITED STATES BANKRUPTCY JUDGE
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