Creditors seek to claw back millions of dollars in Chapter 11 case

The creditors of the New England Compounding Center, including victims of a meningitis outbreak, are looking into the possibility of reclaiming, clawing back, salary and shareholder payments.  In a Chapter 11 bankruptcy, creditors can go back two years from the date of the bankruptcy filing to reclaim payments that are improper or fraudulently conveyed.  Reports show that the largest shareholder received $9 million in 2012 while the chief pharmacist received $3.2 million in addition to what his family members received.

For more read, “Creditors probe meningitis-linked pharmacy owners’ pay.”