Judge rejects Shopko's bankruptcy plan

GREEN BAY, WIS. (AP) – A federal judge rejected Shopko's bankruptcy plan.

US Judge Thomas Saladino, a judge at the Bankruptcy Court, applauded the efforts of Shopko officials, creditors, lawyers and consultants to put an end to the case. But Saladino refused to approve the plan this week as it would have prevented creditors from filing a lawsuit against Shopko.

According to the Press Gazette, one of the major creditors, McKesson Corp., told the judge that he had a civil complaint in fraud for at least four Shopko executives. McKesson was Shopko's leading prescription drug supplier. At the time of the bankruptcy of Shopko in January, it was about 70 million dollars. McKesson says Shopko executives have made false promises to keep Shopko pharmacies stocked with drugs for as long as possible, even if it does not pay the supplier.