Purdue Pharma L.P. Files New Plan of Reorganization Providing for More Than $7.4 Billion in Creditor Distributions

[BumRushDaShow]

Source: Yahoo! Finance/Business Wire

Wed, March 19, 2025 at 12:39 AM EDT


STAMFORD, Conn., March 19, 2025--(BUSINESS WIRE)--Purdue Pharma L.P. ("Purdue" ) today filed a Chapter 11 Plan of Reorganization (the "Plan" ) and related disclosure statement with the United States Bankruptcy Court for the Southern District of New York. Assuming full creditor participation, the Plan will deliver to creditors more than $7.4 billion of cash, subject to certain reserves, to compensate victims and abate the opioid crisis. There will also be substantial value created by the continued development and distribution of lifesaving opioid use disorder and overdose rescue medicines for no profit, as well as expected insurance and other recoveries.

True to the vision Purdue articulated at the outset of the bankruptcy, a new public benefit company, 100% devoted to improving the lives of Americans, will be created upon emergence. Purdue will be dissolved and its assets transferred to the new company. The Sacklers will have no ownership interest or role with the new company, just as they have had no involvement in Purdue since the end of 2018.

In compliance with the Supreme Court’s 2024 ruling, the Plan does not contain non-consensual third-party releases. Instead, creditors will need to opt in to the settlement to receive their full settlement payments. Alternatively, creditors can preserve their right to take legal action against the Sacklers if they do not opt in to the Sackler releases contained in the Plan.

"Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today’s filing is a major milestone in that effort," said Purdue Board Chairman Steve Miller. "We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good. I sincerely thank our stakeholders for their dedication and collaboration, and I look forward to having the plan confirmed and consummated as quickly as possible."

Read more: https://finance.yahoo.com/news/purdue-pharma-l-p-files-043900306.html

[Mike 03]

1. Somehow I lost track of this story a bit... Wasn't the core issue

that the Sacklers were alleged to have transferred enormous wealth out of Purdue Pharma into the family accounts to shield it against legal claims, and that a judge somewhere during this interminable process had decided that Sackler family money could not be protected in this way? Or maybe that decision was reversed?

At least we've come a long way from the days where the Sacklers took zero responsibility whatsoever and blamed Oxycontin addicts for poor self-control and not following the instructions on the prescription bottles.

Bless the journalists who have really stuck with this story and not allowed it to dribble down the memory hole, because there's so damned much other stuff going on these days.

[FakeNoose]

2. Yes the Sacklers have shielded their wealth for the most part

I don't have any insider info on this, but it wouldn't surprise me if this $7.4 billion is coming out of "future profits" somehow. Meanwhile most of the Sackler family have left the country and Uncle Sam can't get its hands on their money. The lawyers and accountants have done their jobs well to protect the evil family.

[DENVERPOPS]

3. Not sure it is everywhere

But here in Denver, I've noticed a new recent movement by Drug Stores/outlets to cut staffs and limit hours. Definitely noticeable.....
What do you suppose is up with that???????

IF...it is happening everywhere, maybe it is a harbinger of things to come, and they know something that we don't know about the future...

[BumRushDaShow]

4. There was a period when some pharmacy chains like Rite Aid

were shedding stores to bolster their finances and places like Walgreens picked them up. Now the CVS's and Walgreens, after buying up smaller chains and storefronts, are starting to feel the pinch because in some cases, you actually have grocery store chains that have their own pharmacies, and then of course, there's GooRx and Amazon. So they are starting to rejigger their business models, etc.

I saw an article recently where I *think* either CVS or Walgreens was working on a plan to downsize their stores to "pharmacy only", without doing any of the other "retail sales" of stuff (e.g., odds and ends stuff like makeup or seasonal stuff, let alone some grocery items that I see some pharmacy chains offer).

[DENVERPOPS]

5. interesting

but I am noticing it in grocery store pharmacies, stand alone pharmacies and chain drug stores. At least here in Metro Denver.....

I recently recall Walgreens as having been taken over by a Hedge Fund.....a certain kiss of death, being a Rape and Run Philosophy just like that movie a while back, saying Greed is Good, and buying a company, dismantling it, selling off the pieces for more than the purchase price.......basically what has happened to Sears, and numerous other notable American Corporations and Industries........

Maybe it is what you mentioned, being fearful of Good Rx and Amazon coming in and dominating the business.

A Home Depot employee told me that Amazon is studying and experimenting with yet another whole new business.......home building supplies..... Which would hammer the living shit out of Home Depot and Lowes..... A contractor can call in an order for the next days materials, lumber and supplies they will need for that day, and it would be delivered to the Jobsite first thing, early the next morning.............That would be a dream come true for the contractor, and a total nightmare for Home Depot, Lowes, etc.....

I can only imagine that you are reading & analyzing & writing countless hours each day to bring us all the key information that you do. Thank you again BRDS, the information you offer to all of us is priceless.......
Please, Please Please, keep it up!!!!!!!!!!!!!! And know, that we all sincerely appreciate ALL you are contributing, day after day......

[BumRushDaShow]

8. Unfortunately, most of these larger businesses live and die by the business media

and how they spin "profits" and "expectations of profits". When you start to see this type of downsizing - and I think it was because there was a big ramp-up at the pharmacies during COVID and now that it has finally become somwhat "endemic", the hiring feast is over and now the "Big Diet" is underway, which will come at the expense of employees and retail outlets.

And with respect to Amazon and competing with HD and Lowes... that might be trickier than they think. Although it's been awhile since I went to the HD near me (I used to be there all the time during gardening seasons due to their big outdoor plant section), I know I always saw contractors in there picking up supplies like lumber. But in some cases, they were also there "in person" to oversee it being cut to spec, and so now you are talking about Amazon needing a bit more "skilled" labor in that type of warehouse and whether they are willing to pay the wages for that, would be a big question mark (although I suppose they could automate the whole thing with their fixation on AI).

And appreciate the compliment! My mother always taught us that scout saying "Be Prepared". So much of what I am doing is making sure I am "prepared"!

Right now, I am aching like mad as I had popped out yesterday to take my car out for its "once a week walk" (to keep the battery charged and fluids moving), stopped by my local pharmacy to pick up a script, and the pharmacist asked me if I wanted to get any vaccines because the person who does them was there and no one was scheduled. She mentioned RSV, which was on my "to get" list, so I went on and got that. It's kicking my butt today with every bone, joint, muscle, tendon, ligament, and piece of connective tissue just screaming.

[DENVERPOPS]

9. Yea

same thing last year with me.........Never had a problem with anything, and one of the vaccines kicked my butt and my arm felt like it was going to fall off........LOL

I was reading an article how all the high powered MBA schools like Harvard, etc were meeting with other schools, suddenly realizing that they had been teaching all these modern techniques to the way Businesses had "evolved". They suddenly realized that THEY had a part in the responsibility of creating this monstrous business community with focus on profits above all else, and stock holders needed to be rewarded at all costs......

I truly believe, that we have gone way past the point of no return, and Trump and the RepubliCONs are fiddling while our beloved USA is burning. And they are throwing gas on the fire, more and more everyday........

Please recover, and keep the great articles coming! and Thx, once again, BRDS

[FakeNoose]

6. American retailers used to believe that Bigger is Better

... and More Stores means More Profits. It's not true anymore ... nowadays More Stores means More Liability.

Walgreens, CVS, RiteAid and others are all cutting back and closing stores. Several of the larger pharmacy chains were hit with federal lawsuits against "pill mills" and opioid abuse. Also many customers are buying the non-prescription items in grocery stores and online, and that's hurting the drug chains also.

The smaller mom-and-pop drugstores didn't get those lawsuits, only the big retailers got hit.

[DENVERPOPS]

7. Also,

the biggest problem is:

Everyone used to strive to have the best product they could, to get the business......

It used to be a "race to the top"...........

Now it is purely a race to the "Bottom Line"........record profits by cutting quality and service to the bones, or lower......

It is now in EVERY industry, nation wide........