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

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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