A special pharmacy company, New England Compounding Center (NECC), has filed for Chapter 11 bankruptcy. This pharmacy was responsible for a meningitis outbreak that killed 39 and injured 600. The people affected by the outbreak received specially mixed steroid injections, which were often used as a painkiller for their backs, as reported by Thomson Reuters News and Insight on December 24, 2012.

Now, NECC wants to compensate victims of its formulated medicine with a special fund. Supposedly, the company has somewhere between $1 million and $10 million in assets and $2.34 million in debts. It owes its largest unsecured creditor, McKesson Drugs, just over $140,000. NECC wants to complete the bankruptcy as quickly as possible and to settle debts with creditors as quickly as possible.

NECC has had financial problems for over one decade. The company opened in 1998 and started having problems, according papers obtained through the Freedom of Information Act, in 1999. Since 1999, regulators could have placed tougher restrictions on the company, but did not, hoping that the company would grow without them. Some of these regulations were related to health and safety issues. Nevertheless, the company made a poor and dangerous batch of steroids. As previously mentioned, the company wishes to set up a compensation fund for those who suffered as a result of the injections. The person overseeing the Chapter 11 restructuring of NECC will also oversee this fund.

If you are facing financial difficulties and have thought about bankruptcy, contact the law office of Jayson Lutzky, P.C. at (800) 660-5299 or visit www.MyNewYorkCityLawyer.com. Mr. Lutzky has over 29 years of experience practicing law and offers free in person initial consultations.