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Bankruptcy Court Confirms Plan Of Liquidation Of Able Laboratories, Inc.

Cranbury, NJ – Able Laboratories, Inc. announced that the United States Bankruptcy Court for the District of New Jersey has confirmed its Plan of Liquidation.

On July 17, 2006 the United States Bankruptcy Court for the District of New Jersey entered a confirmation order in respect of the plan of liquidation of Able Laboratories, Inc. The confirmation order is expected to become final on July 28, 2006, assuming there are no appeals of the order before that time. The transactions contemplated by the plan also are expected to be completed on such date, so it also will be the effective date under the plan.

On July 18, 2005, Able filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey.  On February 27, 2006, the Company filed a proposed plan of reorganization and disclosure statement with the bankruptcy court, which plan was later amended to be a plan of liquidation and filed with the bankruptcy court on March 3, 2006 and April 4, 2006.

The plan provides for the treatment of claims against Able and equity interests in Able. Able had sold substantially all of its assets in December, 2005. The plan provides for the continuation of Able’s business only for completion of FDA compliance requirements, assisting other government agencies with inquiries regarding Able, the wind up of affairs and conversion of all of Able’s remaining assets to cash and the distribution of any net proceeds to creditors in accordance with the priorities established by the Bankruptcy Code.

Under the plan, as confirmed, on the effective date, Able, on its own behalf and on behalf of holders of allowed claims in class 3 under the plan, will execute a litigation trust agreement and will take all other steps necessary to establish the a litigation trust to hold all claims and causes of action which may be brought on behalf of Able arising under any provisions of the Bankruptcy Code or otherwise, including avoidance actions and derivative claims. The litigation trust will be managed by a litigation trust advisory committee comprised of selected members of the unsecured creditors committee.
 
On the effective date, all equity interests in Able will be canceled. Holders of claims and equity interests will be precluded and enjoined from asserting against Able, the liquidation trust and any of the assets or properties of Able or the liquidation trust, any other or further claim or equity interest based upon any act or omission that occurred prior to the effective date. Also on the effective date, Able’s board of directors will be relieved of any further duties. The company will be managed by Charles Stanziale, who will serve as the sole officer and director of Able.
 
Upon the distribution of all assets of Able pursuant to the plan, Able will be deemed dissolved for all purposes without the necessity for any other or further actions to be taken by or on behalf of Able.

There can be no assurance at this time that the plan, once effective, will achieve its objectives as described above.

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