- Endo International Plc (NASDAQ: ENDP) filed for bankruptcy after reaching a $6 billion deal with some of its creditors as the company sought to settle opioid-related lawsuits.
- The pharmaceutical company is the latest to file for Chapter 11 to address opioid claims. Purdue Pharma, the maker of OxyContin, filed in September 2019, while Mallinckrodt (OTC:MNKKQ) Plc (OTC: MNKPF), a generic opioid manufacturer, recently emerged from bankruptcy.
- "By definitively addressing the more than $8 billion of debt that has burdened our balance sheet and establishing a pathway to closure for the thousands of opioid-related and other lawsuits that the company has been defending at an unsustainable cost, we will be able to move forward...," said CEO Blaise Coleman.
- Related: Endo Shares Plunge On Imminent Bankruptcy Filing.
- Endo said that the creditors, who will also assume some of the company's liabilities, will substantially control all of its assets.
- The company also reached a deal with U.S. state attorneys general to provide $450 million over ten years, resolving allegations that the company boosted opioid sales using deceptive marketing and bans the marketing of its opioids forever.
- The company said creditors would also establish voluntary trusts with $550 million to be funded over ten years to settle the opioid claims.
- In June, Endo missed a $38 million interest payment amid discussions with a group of unsecured bondholders who had urged the company to avoid filing for bankruptcy.
- Price Action: ENDP shares are up 16.20% at $0.43 during the premarket session on the last check Wednesday.
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Read at Benzinga