BY OUR PHARMA CORRESPONDENT
July 30, 2005: Able Laboratories filed a petition to reorganise under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the District of New Jersey, Trenton Division on July 18, 2005.
The move has come after the company suspended manufacturing operations in May 2005, and recalled its product line after concerns were raised about laboratory practices and compliance with standard operating procedures.
The bankruptcy filing was intended to help it continue whilst it works with the FDA to get its operations back on line. In conjunction with the filing, Able also filed a number of 'first day motions'. These included requests to retain a Chief Restructuring Officer and a Director of Restructuring, as well as other professionals necessary to support the company's reorganization.
During the restructuring process, vendors, suppliers and other providers will be paid under normal terms for goods and services provided after the filing date, Able said in a press statement.
Able Laboratories, Inc. is a developer and manufacturer of generic pharmaceutical products in tablet,capsule, liquid and suppository dosage forms. In May 2005, Able suspended manufacturing and distribution of its entire product line. The company currently is not generating income or revenue, because of its suspension of manufacturing operations and product recalls.