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 take care of a few of its collectors, because the U.S. drugmaker seeks to settle hundreds of lawsuits over its alleged position within the nation’s opioid epidemic.

The pharmaceutical firm is the most recent 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 stability sheet and establishing a pathway to closure with respect to the hundreds of opioid-related and different lawsuits that the corporate has been defending at an unsustainable value, we will transfer ahead…,” Endo’s Chief Govt Officer Blaise Coleman mentioned in an announcement.

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 may even assume among the firm’s liabilities, will considerably management all of its property, Endo mentioned.

The corporate additionally reached a take care of U.S. state attorneys basic to offer $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 without end, in line with the workplace of Massachusetts AG.

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

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

In June, the drugmaker missed a $38 million curiosity fee, 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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