Coventry
R.I. Sen. Blais’ pharmacy to close
01:00 AM EDT on Saturday, July 4, 2009
PROVIDENCE — A federal judge has given a court-appointed trustee permission to close the pharmacy and health-care company started by state Sen. Leo R. Blais three decades ago.
The trustee, Providence lawyer Thomas P. Quinn, apparently gave up trying to save the Pawtuxet Valley Prescription & Surgical Center and on Thursday asked a judge in U.S. Bankruptcy Court to allow “the immediate abandonment of the retail operation . . . on the grounds that the continued operation of the retail pharmacy business is burdensome . . . and of inconsequential value.”
In September 2007, Blais sought bankruptcy protection for Pawtuxet Valley Prescription & Surgical Center Inc. The company owed creditors $4.75 million, when Blais — the company’s president and chief executive officer — made the Chapter 11 filing in U.S. Bankruptcy Court in Providence.
Chapter 11 is the usual route for sizable businesses as the filing allows them to put off paying some bills, such as loan payments. Most Chapter 11 filings are voluntary, though a small number are forced by people seeking money for goods or services provided to a company.
Generally, businesses going this route hope to emerge from court protection. That doesn’t seem to be the case with Blais’ business as the trustee on Thursday sought permission from U.S. Bankruptcy Court Judge Arthur N. Votolato for permission to dissolve the operation. Votolato granted the request.
According to a hearing summary, posted on the court’s Web site: “The primary concern is an orderly transition of patient records and care. … Patients will be needing I.V. treatment over the long weekend.”
Mark Gilmore, the company’s chief executive officer, will buy the I.V. treatment business, according to an audio transcript of a bankruptcy court hearing Thursday.
Steven P. DeLuca, a lawyer for secured creditor Bancorp Rhode Island, told Votolato that Gilmore will pay $20,000 in cash for the treatment business.
The “non-I.V. side” of the business will be closed immediately, DeLuca said.
“I’d like authority immediately to abandon the retail side of the business,” Quinn told Votolato.
Votolato granted the request.
Neither Blais nor Quinn returned phone calls seeking comment on this latest filing.
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