Magazine article Drug Topics

New Deal

Magazine article Drug Topics

New Deal

Article excerpt

Independent pharmacy owners who reported getting burned on a lease deal with Recomm International Display Corp. are voting on a plan to reorganize the Florida firm. They are casting their vote months after the company had promised to share advertising revenues from its electronic message boards and kiosks but went belly-up instead.

Packets laden with information written in dense legalese were mailed last month to the estimated 22,000 Recomm creditors, including about 8,000 independent pharmacy owners. Stemming from legal action in a Florida federal district court, the proposed reorganization includes about $35 million in concessions from equipmentleasing companies, which continued to dun many leaseholders after Recomm went bankrupt. The plan eliminates past-due and collection fees and allows the leases to be restructured. In return, the creditors have to give up their right to sue the lease companies. In addition, Recomm will be purchased by In Store Promotions Inc., a Darien, Conn., firm set up with money from the leasing companies. In Store will commit 30% of any ad revenues to customers stuck with the Recomm boards and kiosks and will set aside 30% of its stock in a trust for the potential benefit of the creditors.

Dexter Spaulding, who said he is on the hook for about $80,000 in equipment leases, is one pharmacist who thinks the Recomm reorganization is a lose-lose situation. The owner of Swanton Rexall Drug, Swanton, Vt., he's inclined to reject the proposal but has second thoughts. …

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