Daily Management Review

Purdue Pharma files for bankruptcy


Purdue Pharma, the US-based producer of opioid painkiller OxyContin, commenced bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code. This procedure is one of the conditions of the agreement reached the other day, under which the company intends to resolve claims from the states and consumers in involvement in exacerbating the opioid crisis in the United States.

“This procedure, which will be supervised by the court, is designed to help, among other things, streamline and support fair settlement of all claims against Purdue while maintaining the value of the company's assets in the interests of those affected by the opioid crisis,” the company said in a statement. A new company will be created as part of the bankruptcy procedure. It will be headed by a new board of directors, which the plaintiffs and bankruptcy court must approve.

In a statement, Purdue Pharma chairman of the board Steve Miller explained that this is "the best and only way to resolve a difficult litigation that quickly bled out the company's assets and threatened to destroy the entire Purdue." Yet, the agreement reached last week was supported only by 24 American states, 5 American territories and about 1 thousand cities and districts. However, as Mr. Miller notes, the company “does not lose hope of receiving support from all other states. You can choose from only two options: either use all available resources to help the affected communities, or spend all the money on litigation.”

source: nytimes.com