Creditors overwhelmingly support confirmation of the Plan
Purdue Pharma L.P. today announced preliminary voting results that show overwhelming support for its chapter 11 plan of reorganization (“The Plan”). More than 95% of the 120,000-plus votes submitted were in favor of confirmation. Out of almost 5,000 state and local governmental creditors, almost 97% voted to accept the plan. The votes were calculated by PrimeClerk, Purdue’s court-authorized solicitation and balloting agent, and the filing is available on the docket via this link.
“This is an unprecedented expression of support for a restructuring of this size and complexity, in favor of a Plan that will provide needed resources to those affected by the opioid crisis,” said Steve Miller, Chairman of Purdue Pharma. “The preliminary voting results demonstrate a broad consensus among every organized creditor group in these proceedings, and we will continue to work for even greater consensus ahead of the confirmation hearings.”
These results follow the recent report from the third and final round of mediation, after which it was announced that 15 additional state attorneys general now support Purdue’s Plan, bringing the total number of supporting state attorneys general to approximately 40. The Plan is supported by the Official Committee of Unsecured Creditors, the Ad Hoc Committee of Governmental and Other Contingent Litigation Claimants, the Multi-State Governmental Entities Group, the Native American Tribes Group, the Ad Hoc Group of Individual Victims, the Ad Hoc Group of Hospitals, the Third-Party Payor Group, the Ratepayer Mediation Participants, and the NAS Committee representing caregivers and children affected by Neonatal Abstinence Syndrome.
Purdue expects to make public the final voting results by August 2, but the tally is not expected to change materially from these preliminary results. A Plan confirmation hearing in the United States Bankruptcy Court for the Southern District of New York is currently scheduled to commence on August 9, 2021.
About Purdue Pharma L.P.
Purdue Pharma and its subsidiaries develop, manufacture and market medications and consumer health products to meet the evolving needs of healthcare professionals, patients, consumers and caregivers. The company seeks to achieve a global bankruptcy settlement that would deliver more than $10 billion in value, including 100% of Purdue’s assets and millions of doses of opioid addiction treatment and overdose reversal medicines, to communities across the country to fund programs specifically for abatement of the opioid crisis. The bankruptcy settlement will also deliver funds to private abatement trusts for the benefit of personal injury claimants.
If Purdue’s settlement is approved, Purdue’s assets will be transferred to a new company. This new company will be governed by new independent board members, and will operate in a responsible and sustainable manner taking into account long-term public health interests relating to the opioid crisis. The company will continue serving patients and consumers who rely on its medicines and products, pursuing its pipeline, and introducing medicines that will help save and improve lives.
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