Generic Drugmaker Endo’s Bankruptcy: Lenders Suggest $465M Payment To Settle Dispute With Federal Entities: Report – Endo International (OTC:ENDPQ)

Endo International’s lenders have reportedly proposed a new deal to settle with U.S. government agencies that have been in disagreement with the pharmaceutical company’s restructuring strategy during bankruptcy proceedings. This comes after Endo filed for Chapter 11 in August 2022.

According to reports, the lenders have suggested allocating up to $465 million to these federal entities, marking a significant development following extended negotiations between the lenders and government agencies. The proposal outlines a plan to provide $365 million to the objecting government agencies over a decade, with this designated sum taking precedence over other outstanding debts if the restructured company were to face another bankruptcy scenario.

Alternatively, the proposal offers the agencies a lump sum payment of $200 million upon the effective initiation of the Chapter 11 plan. Additionally, an extra $100 million in unsecured notes may be included in 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 and enable the distribution of funds to opioid victims, as per the report.

In July, the Justice Department raised objections to a $600 million trust arrangement proposed by Endo to compensate opioid claimants. The objections refuted allegations regarding the company’s painkiller, Opana ER, and its alleged contribution to addiction.

This proposed deal represents a potential breakthrough in the ongoing negotiations between Endo and the U.S. government agencies. It offers a way for the pharmaceutical company to address the concerns raised by these agencies and move forward with its Chapter 11 restructuring plan.

If approved, the deal would provide a significant amount of funding to support the compensation of opioid victims and potentially alleviate some of the financial burden on Endo. It would also allow the company to focus on its future operations and regain stability after the challenges it has faced in recent years.

It is important to note that the proposed deal is still subject to approval by all parties involved, including the bankruptcy court overseeing Endo’s Chapter 11 proceedings. However, this development indicates a step towards resolution and a potential path forward for Endo International.