Monday, January 21, 2013

Hearing set in New England Compounding Center case

January 21, 2013

BOSTON — A hearing has been scheduled on a request for an independent trustee to oversee the bankruptcy proceedings of a firm linked to a meningitis outbreak.
The hearing on U.S. Trustee William Harrington's request is scheduled for Thursday in U.S. Bankruptcy Court in Springfield.
A steroid produced by the New England Compounding Center has been linked to a fungal meningitis outbreak that's killed 44 and sickened more than 600. The firm filed for Chapter 11 bankruptcy last month, saying the purpose was to establish a compensation fund for victims.
Harrington then requested the Chapter 11 trustee, citing reasons including the firm's "gross incompetence" and a purported conflict of interest involving the accountant the firm chose to lead it through bankruptcy.
The company opposes the request, saying it would hinder progress toward establishing the fund.
Source found here
 

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