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SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Parent company for pharmaceutical giants file Chapter 7

Vestiq Holdings closed the doors on its two major properties, Vestiq Pharmaceuticals and Praelia Pharmaceuticals. The company, known to South Carolina residents as a major player in the pharmaceutical industry since 2013, filed for Chapter 7 bankruptcy, citing a multi-million dollar debt load. The filing took place in early May of this year.

Bankruptcy paperwork confirms the company listed $11.3 million in assets against nearly $14 million in debt. The largest creditor associated with the account was Vanguard Pharma, which claimed an outstanding $4 million debt for its own. As a result of the filing, both Vestiq Pharma, the business development arm of the company, and Praelia Pharma, the branded product marketer, will be closing their doors. Their assets will be liquidated to help pay down creditors.

The company was founded in Jan. 2013 and immediately made inroads into the lucrative pharmaceutical industry, acquiring products in both customer and prescription lines. It is unknown what led to the serious downturn in financial feasibility that resulted in the current bankruptcy filing. Investors and the company's ownership have been tight-lipped on the subject ahead of court proceedings to formalize the filing.

Chapter 7 bankruptcy can be a powerful tool in the battle against rising debt. No matter how large or small the company, liquidating assets to satisfy outstanding debts can be a good way to get a handle on spiraling debts and ingratiate creditors. South Carolina business owners know that a smart owner knows when to gracefully accept an alternative solution to a situation that might otherwise be untenable.

Source: bizjournals.com, "Morrisville pharma files Chapter 7 bankruptcy", Jason deBruyn, May 6, 2014

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