Case Study

Interim Management

Pharmaceutical Manufacturing


An established New Jersey pharmaceutical manufacturer, with a niche in controlled substances, purchased in a leveraged buy-out from parent organization, loses a lender-liability lawsuit and files Chapter 11 in the southern district of New York.

At the time, it is one of 3 companies in the U.S. licensed by the DEA to import, export, manufacture and conduct research on opiates.

It has an aged 9.5 acre, 24-hour patrolled, environmentally and structurally challenged plant site.

Bristol-Myers Squibb is its only customer purchasing a non-opiate product.

After three years of mismanagement in Chapter 11 the unsecured creditors committee seeks appointment of a Chapter 11 trustee.


As Chapter 11 Trustee, displaced former officers, directors and management, and undertook a comprehensive operational, financial and regulatory review.

Stabilized operations and improved relationship with sole customer.

Maintained cash neutral operations, improved work environment and negotiated 2 union contracts.

Resolved significant NJ environmental issues.

Passed multiple DEA exams and maintained DEA licenses against challenges from competitors in administrative law court in Washington, D.C.

Conducted sales effort with 123 prospective purchasers and successful outcome.


Chapter 11 plan of reorganization, with sale component, consensually confirmed.

Company maintained operations for years before selling real estate and moving to Delaware.