Endo Files For Chapter 11 As US Opioid Litigation Goes On, Reaches $450M Settlement For Opioid Crisis

Endo International Plc 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 Plc 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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Endo Files For Chapter 11 As US Opioid Litigation Goes On, Reaches $450M Settlement For Opioid Crisis

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