HomeMarket NewsMicro Cap StocksEndo's Lenders Offer $465M to Settle Bankruptcy Dispute with Federal Entities

Endo’s Lenders Offer $465M to Settle Bankruptcy Dispute with Federal Entities

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Endo International’sΒ ENDPQ lenders have reportedly come up with a new proposal to resolve their conflict with U.S. government agencies over the pharmaceutical company’s bankruptcy reorganization. The lenders have suggested paying up to $465 million to the federal entities, marking a significant breakthrough after prolonged negotiations.

The proposed settlement plan involves allocating $365 million to the objecting government agencies over a period of ten years. This designated amount would take precedence over other outstanding debts in the event of another bankruptcy, as per the Wall Street Journal.

Alternatively, the proposal includes offering a lump sum payment of $200 million at the launch of the Chapter 11 plan. Additionally, an extra $100 million in unsecured notes may be added to the total payments based on the restructured company’s performance meeting agreed-upon projections between 2024 and 2028.

The resolution aims to clear the path for Endo to make progress in exiting Chapter 11, allowing for the distribution of funds to opioid victims, as per the report.Β 

The Justice Department had previously raised objections in July to Endo’s proposed $600 million trust arrangement to compensate opioid claimants, refuting allegations related to the company’s painkiller Opana ER and its alleged role in addiction.

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