Endo files for bankruptcy as U.S. opioid litigation drags

Aug 16 (Reuters) – Endo Worldwide Plc (ENDP.O) filed for chapter on Tuesday after reaching a $6 billion cope with a few of its collectors, because the U.S. drugmaker seeks to settle 1000’s of lawsuits over its alleged position within the nation’s opioid epidemic.

The pharmaceutical firm is the newest to file for Chapter 11 to handle opioid claims. Purdue Pharma, the maker of OxyContin, filed in September 2019, whereas Mallinckrodt Plc, a generic opioid producer, lately emerged from chapter.

“By definitively addressing the greater than $8 billion of debt that has burdened our steadiness sheet and establishing a pathway to closure with respect to the 1000’s of opioid-related and different lawsuits that the corporate has been defending at an unsustainable price, we can transfer ahead…,” Endo’s Chief Government Officer Blaise Coleman stated in a press release.

The corporate’s Chapter 11 chapter submitting within the Southern District of New York confirmed property and liabilities within the vary of $1 billion to $10 billion.

The collectors, who will even assume a few of the firm’s liabilities, will considerably management all of its property, Endo stated.

The corporate additionally reached a cope with U.S. state attorneys common to supply $450 million over a interval of 10 years, resolving allegations that the corporate boosted opioid gross sales utilizing misleading advertising and marketing, and bans the advertising and marketing of its opioids perpetually, in keeping with the workplace of Massachusetts AG.

Collectors will even set up voluntary trusts with $550 million to be funded over 10 years to settle the opioid claims, the corporate stated.

Endo has been discussing the potential for submitting for chapter safety in a number of current filings. learn extra

In June, the drugmaker missed a $38 million curiosity cost, amid discussions with a bunch of unsecured bondholders who had urged the corporate to keep away from submitting for chapter.

Reporting by Jahnavi Nidumolu and Shubham Kalia in Bengaluru; Modifying by Neha Arora, Rashmi Aich and Sriraj Kalluvila

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