WOONSOCKET (dpa-AFX) - Omnicare, LLC, a subsidiary of CVS Health (CVS), has voluntarily initiated a court-supervised Chapter 11 process in the U.S. Bankruptcy Court for the Northern District of Texas. This move aims to address issues stemming from recent litigation in the U.S. District Court for the Southern District of New York, as well as broader financial challenges affecting the long-term care pharmacy sector.
As part of the restructuring effort, Omnicare is exploring options including a standalone reorganization or potential sale. To support operations during this process, the company has secured a $110 million debtor-in-possession (DIP) financing agreement, which-pending court approval-alongside ongoing cash flow, is expected to provide sufficient liquidity to meet its business obligations.
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