Endo International ENDPQ has gained approval from U.S. Bankruptcy Court Judge James Garrity to initiate the solicitation of votes for its restructuring plan.
Compensation Plan Overview
Endo’s restructuring plan outlines a $600 million trust to compensate creditors, encompassing states, tribes, public schools, hospitals, and private institutions linking opioid addiction to the company’s painkiller Opana ER.
The plan, still under negotiation with U.S. agencies, proposes payments of up to $465 million over ten years.
Endorsement and Support
A group comprising states, tribes, and private institutions is endorsing the solicitation of creditor votes, expressing confidence in the progress of discussions between Endo, the U.S. Trustee, and the U.S. Department of Justice regarding the plan.
Arik Preis, representing a panel of opioid creditors, affirmed their support, the Wall Street Journal stated they would not advocate for solicitation if discussions were deemed uncomfortable with the Department of Justice.
The group delayed its support for voting solicitation until it became evident that Endo’s plan had overcome significant obstacles.
Backdrop and Context
This cautious approach stems from the backdrop of delays faced by entities affected by the opioid crisis in accessing funds from Purdue Pharma’s bankruptcy, which is currently under scrutiny by the U.S. Supreme Court.
Both Purdue and Endo filed for bankruptcy, respectively, in 2020 and 2022, confronting numerous lawsuits, including those from state and local governments, related to the sale and marketing of painkillers.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.