government in its efforts to expand and accelerate domestic manufacturing in support of future pandemic preparedness," said Blaise Coleman, President and CEO of Endo. "Endo strives to be a force for good, and we are proud to partner with the U.S. government will fund approximately $90 million of the program's total expected cost of approximately $120 million. Under the terms of the agreement, the U.S. It will also provide expanded product inspection and packaging capacity as well as sterile fill-finish manufacturing services to the U.S. 22-22549, hearing 3/28/23.Under the terms of the agreement, Par Sterile's Rochester facility will establish a new sterile fill-finish manufacturing asset capable of processing liquid or lyophilized products requiring Biosafety Level (BSL) 2 containment. The case is In re Endo International plc, Bankr. The new subsidiaries would then be sold to the successful bidder as part of a sale. Part of the proposed sale involves transferring the businesses of each of Endo’s two primary Irish asset-owning debtors into two, newly-formed Irish subsidiaries that would carry on the same businesses, according to court records. Garrity ruled that he didn’t yet need to address the objectors’ issues, but left open the possibility that they could be raised at a sale hearing if a resolution isn’t reached through ongoing mediation. The deals improperly incorporate fixed key terms, including distributions for unsecured creditors, outside of a formal reorganization plan, the trustee said.Īn attorney for the future claims representative argued Tuesday that aspects of the bidding procedures were confusing, destroyed value, and are calculated to provide the lenders with a leg up in the process. The US Trustee, which serves as the Department of Justice’s bankruptcy watchdog, argued that the settlements amount to a “sub rosa” plan that violates the bankruptcy code’s payment priority scheme.
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In a separate deal, Endo’s unsecured creditors would receive $60 million in cash, plus a potential 4.25% equity stake in the reorganized company. The deal with an opioid victim committee would provide about of $119 million in cash to private opioid abuse claimants. The deals pave the way for Endo to settle mass opioid litigation through the establishment of various trusts. The lender deal would provide compensation for Endo’s creditors, including opioid claimants.Įndo’s lenders earlier this month reached settlements that would provide higher payouts to certain creditor groups in return for their support of the bankrupt opioid manufacturer’s reorganization. They argued the proposed structure of the lenders’ offer, which is largely in the form of a credit bid, would stifle other, better offers.ĭublin-based Endo is one of several opioid manufacturers to enter Chapter 11 in the last few years after facing claims the companies profited from the opioid crisis.
US Bankruptcy Judge James Garrity approved bidding procedures that would govern the sale of Endo’s assets late Tuesday, overruling objections from the US Trustee and a representative for potential future opioid claimants. Endo International Plc won bankruptcy court approval to put its assets up for auction with a starting bid its by lenders worth more than $6 billion, clearing a major hurdle in its Chapter 11 case.
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