Rochester Drug liquidation plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Feb. 24 – Rochester Drug Cooperative, Inc.’s second amended Chapter 11 plan of liquidation drew an objection from Region 2 U.S. trustee William K. Harrington, according to a Tuesday filing with the U.S. Bankruptcy Court for the Western District of New York.

Harrington said the debtor has failed to meet its burden of proof to show that the plan meets the statutory requirement of section 1129 of the Bankruptcy Code.

“The plan impermissibly seeks broad third-party releases that do not comport with second circuit law and the Bankruptcy Code,” he said.

The plan confirmation hearing has been scheduled for Feb. 26.

The company is a Rochester, N.Y.-based health care distributor. It filed bankruptcy on March 12, 2020 under Chapter 11 case number 20-20230.

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