Tainted pharmacy files for Chapter 11 bankruptcy

The Massachusetts-based pharmacy implicated in a deadly outbreak of meningitis across the United States recently filed for Chapter 11 bankruptcy.

The New England Compounding Center said that it would establish a fund to help compensate victims of the contamination that led to the deaths of 39 people and more than 600 injuries from injections of methylprednisolone acetate, a drug typically used to ease back pain, according to the U.S. Centers for Disease Control and Prevention.

According to documents in the U.S. Bankruptcy Court for the District of Massachusetts, NECC, a private company, had less than $2.34 million in debts when it filed for protection. Carla Conigliaro and Barry Cadden are listed as equity shareholders. Conigliaro holds a 55 percent stake, according to Fox News.

A press statement from the company said that it filed for Chapter 11 in order to purse a quicker payout to its creditors than could be achieved through litigation.

Keith Lowey was named as NECC's independent director and chief restructuring officer. He said he plans to set up a compensation fund to aid the victims.

"We want to assemble a substantial fund, and then distribute it fairly and efficiently to those who are entitled to relief," Lowey said, Fox News reports.