Purdue Pharma has submitted a revised Chapter 11 bankruptcy plan proposing more than $7.4 billion in cash payments to creditors, including U.S. states and others, to compensate victims of the opioid crisis, Bloomberg reported March 18.
The plan includes the dissolution of Purdue and the creation of a new public benefit company, which will operate independently of the company’s current owners, the Sackler family.
Under the proposal, the Sacklers would contribute up to $6.5 billion over 15 years, with an initial $1.5 billion payment when the reorganization takes effect.
The bankruptcy case has been the center of legal disputes between the Sackler family and a bipartisan group of state attorneys general who alleged the opioid epidemic, which has killed hundreds of thousands of Americans, was exacerbated by the marketing and sale of Purdue Pharma’s OxyContin painkiller. As a result, the company filed for bankruptcy protection in 2019.
