New Jersey business bankruptcy can happen for many reasons

On Behalf of | Dec 31, 2012 | Business & Commercial Bankruptcy |

Readers in New Jersey may remember the recent reports that appeared in the national media discussing the illnesses contracted by individuals who were given a commonly used steroid. The specialty pharmacy that distributed the steroid sold the drug to pharmacies and medical centers across the nation. Now the same organization has filed for a business bankruptcy.

The business bankruptcy came after the company learned that 39 people had died from the steroid that it sold. In addition, another 600 people suffered injury as a result of use of the injections of methylprednisolone acetate. The drug was used as a common treatment for back pain.

The pharmacy that was found to have distributed the drug was shut down after people became ill. Now the business says that it has a fund to help pay those who were injured. In addition, officials for the business say that they filed for the bankruptcy to avoid the cost and time of multiple lawsuits stemming from the affected drug.

A business bankruptcy can be filed in New Jersey by an organization that becomes unprofitable for many different reasons. Though in this case the pharmacy inadvertently sent out medication that made people ill, in some instances business owners decide to file for bankruptcy protections due to the large amount of debt held by a company compared to its assets. When this happens, a business owner may find that they can take time to restructure a business while in bankruptcy or decide to end the business. The time offered to such an individual by a business bankruptcy filing can be a great benefit to owners.

Source: Fox Business, “Pharmacy Linked to Meningitis Outbreak Files for Bankruptcy,” Dec. 21, 2012


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