Rochester Drug Cooperative submits plan to distribute sale proceeds

By Caroline Salls

Pittsburgh, July 22 – Rochester Drug Cooperative, Inc. filed a plan of liquidation and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Western District of New York.

According to the disclosure statement, the plan is designed to provide a mechanism for distribution of the remaining proceeds of the company’s asset sales, to complete the liquidation of remaining assets, including avoidance actions and causes of action, and to reconcile claims.

Rochester Drug said it is selling a substantial portion of its assets to third parties. The balance of the assets will be administered under the terms of a liquidation trust agreement.

Under the plan, administrative claims will be paid in full in cash.

M&T Bank and the United States of America’s claims will be treated in accordance with a global settlement agreement.

Holders of unsecured priority claims will be paid in full from a claims reserve before payment is made to holders of other unsecured claims.

Holders of those other unsecured claims will receive a share of liquidating trust assets.

Holders of existing interests will receive no distribution unless all unsecured claims are paid in full.

The disclosure statement hearing is scheduled for Aug. 28.

The company is a Rochester, N.Y.-based health care distributor. It filed bankruptcy on March 12 under Chapter 11 case number 20-20230.

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