June 7, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Chem Rx Corp. (OTC: CHRXQ), a bankrupt long-term care pharmacy in the United States, said that it has received final court approval to utilize its cash collateral to fund its continued operations.  

The company said it continues to maintain normal business operations while it works with its lenders and creditors to reach agreement on a restructuring of the company.

The court had previously approved the company's ability to pay employee wages, salaries and benefits both before and accruing after its voluntary petitions under Chapter 11, as well as payments to vendors for products and services purchased after the filing date on an interim basis.

According to Chem Rx, a June 3 order of the court authorizes Chem Rx to continue to make these payments on an ongoing basis.  

The company said it is also working with its advisors to explore all forms of transactions, including a sale or other investment, for the long-term financial viability of the company.  

New York-based Chem Rx is an institutional pharmacy serving the New York City metropolitan area, as well as parts of New Jersey, upstate New York, Pennsylvania and Florida. Chem Rx's client base includes skilled nursing facilities and a wide range of other long-term care facilities.

On May 11, Chem Rx Corporation and its direct and indirect subsidiaries B.J.K. Inc., ChemRx New Jersey, LLC, ChemRx/Salerno's, LLC, ChemRx-Boca Raton, LLC and ChemRx Care, LLC filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the District of Delaware.

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