New England Compounding Creditors Seek $21 Million Clawback
1/25/2013 7:15:24 AM
Attorneys representing creditors of New England Compounding Pharmacy, a bankrupt Massachusetts custom drug maker tied to a fatal meningitis outbreak, are seeking to claw back more than $21 million, after revelations that owners pulled out funds in the year before the firm sought Chapter 11 protection. In a document filed Tuesday, the creditors asked the court for standing to prosecute claims against New England Compounding Center's owners, after the owners disclosed they had withdrawn $16.3 million from the company in the year preceding the bankruptcy filing, and paid another $4.8 million to insiders.
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