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Judge scolds Robins Co.
RICHMOND — A federal judge has scolded the A.H. Robins Co. for not informing him of a $61 million Internal Revenue Service claim against the company.
Robins went before U.S. District Judge Robert R. Merhige Saturday seeking permission to borrow $36 million from three banks to meet a seasonal cash shortage. Merhige is overseeing the pharmaceutical company’s bankruptcy proceedings.
The IRS opposed the request, contending Robins owes it $61 million in back taxes and interest dating back to 1978.
Robins said it is involved in a dispute with the IRS about the allocation of income from its Puerto Rico subsidiary. Robins said its obligation to the IRS cannot be determined until that dispute is resolved.
“There was a problem . . . and there is a problem,” Judge Merhige said of the IRS claim, which was filed in court Friday. “You neglected to give me the full story. I want it understood that we want everthing right out on the table.”
S. David Schiller, an assistant U.S. attorney, said he was told two weeks ago there were no tax claims of any sort.
Penn Ayers Butler, a Robins lawyer, said when he assured Mr. Schiller there was no tax problem, he was referring to a customary concern in Chapter 11 cases that no money withheld from wages was being misused
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