Generic Drugmaker Endo's Bankruptcy: Lenders Suggest $465M Payment To Settle Dispute With Federal Entities: Report

Endo International's ENDPQ lenders have reportedly proposed a fresh deal to settle with U.S. government agencies in disagreement with the pharmaceutical company's restructuring strategy during bankruptcy proceedings that were started in August 2022. 

The proposal suggests allocating up to $465 million to these federal entities, marking a significant development following extended negotiations between the lenders and government agencies.

Endo's first-lien debtholders outlined a plan to provide $365 million to the objecting government agencies over a decade. This designated sum, if left unpaid, would take precedence over other outstanding debts should the restructured company face another bankruptcy scenario, the Wall Street Journal noted.

Alternatively, the proposal offers the agencies a lump sum payment of $200 million upon the effective initiation of the Chapter 11 plan. Moreover, an additional $100 million in unsecured notes might be incorporated into the total payments contingent upon the restructured company's performance surpassing the agreed-upon projections between 2024 and 2028.

The resolution aims to pave the way for Endo to move closer toward exiting Chapter 11, enabling distribution to opioid victims, as per the report. 

Earlier objections raised by the Justice Department in July contested a $600 million trust arrangement proposed by Endo to compensate opioid claimants, refuting allegations regarding the company's painkiller Opana ER and its purported contribution to addiction.