Purdue Pharma L.P. Files New Plan of Reorganization Providing for More Than $7.4 Billion in Creditor Distributions
STAMFORD, Conn.–(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.”
Plan Value
The cash value of the Plan, assuming full creditor participation and net of certain reserves, is approximately $7.4 billion, including available cash from Purdue and payments by the Sacklers. The number could go higher, with up to an additional $500 million from the Sacklers if the international pharmaceutical businesses they will be required to sell yield proceeds above a certain value. Additional value is also expected from insurance and litigation recoveries that the bankruptcy estate will pursue.
In addition to this cash value, the Plan creates a company equipped to provide millions of doses of lifesaving opioid use disorder treatment and overdose reversal medicines.
Structure of Emerging Public Benefit Company
Upon emergence, Purdue will be dissolved. The public benefit company that succeeds it will be owned by an independent, newly created foundation. By charter, its core mission will be to abate the opioid crisis and improve public health.
Dedicated to Addressing the Opioid Crisis
The post-emergence company will continue Purdue’s work to abate the opioid crisis, at no profit.
Document Repository and Other Injunctive Relief
The current terms of the Plan and disclosure statement as filed can be viewed here. The Debtors expect that the new Plan – which is the result of many months of mediation between and among Purdue and its creditors – will receive support from the overwhelming majority of its creditors.
The Plan filed today will be amended or supplemented from time to time and is subject to confirmation by the Bankruptcy Court. A hearing to approve the disclosure statement is currently expected to occur in May 2025. Assuming the Bankruptcy Court approves the disclosure statement, Purdue will commence the solicitation of votes on the Plan and thereafter move to confirmation and emergence.
About Purdue Pharma L.P.
Purdue Pharma and its subsidiaries develop, manufacture and market medications to meet the evolving needs of healthcare professionals, patients, and caregivers. Purdue and its subsidiaries focus on balancing innovative science with clinically effective, compassionate care. The Company’s goal is to serve patients who rely on its medicines, pursue its pipeline of branded and generic medications, and introduce medicines that will help save and improve lives.
For more information, visit www.purduepharma.com.
Media Contact: news@pharma.com
Media Contact: news@pharma.com
Media Contact: news@pharma.com
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