Pharmacy Chain 36.6 faces bankruptcy proceedings

Russia-Based Pharmacy Chain 36.6 has had bankruptcy proceedings initiated against it by pharmaceutical distributor Protek in an attempt to recover debts owed by the retail giant. On 4 August Protek filed papers with the Arbitration Court of Nizhny Novgorod recognising the debtor TDE Pharmacy - part of the Pharmacy Chain 36.6 network - as insolvent. Protek has also declared its intention to file further bankruptcy orders against other Pharmacy Chain 36.6 divisions, in order to regain RUB300 million (USD9.63 million).

Problems concerning debt between the two companies began in May 2008. An accumulation of debt led to Protek terminating its supply to the retail chain in November 2008, and filing numerous lawsuits at the time in order to reclaim the money. At the start of 2009, debts owed by Pharmacy Chain 36.6 to Protek were reported as RUB730 million (USD23.43 million). As of 11 August 2009, over 140 lawsuits have been filed by Protek. Around RUB400 million (USD12.84 million) has been repaid so far through Pharmacy Chain 36.6's manufacturing unit Veropharm. Protek claims to have tried negotiating with the retail chain with limited success and as a result has taken stronger action. Pharmacy Chain 36.6, however, believes that bankruptcy is unlikely and that debts will be immediately paid.

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