Purdue files new bankruptcy plan

Purdue Pharma has filed a Chapter 11 Plan of Reorganization and related disclosure statement with the US Bankruptcy Court for the Southern District of New York.

Assuming full creditor participation, the Plan will deliver to creditors more than $7.4 billion of cash, subject to certain reserves, to compensate victims and abate the opioid crisis. Purdue was the manufacturer of the addictive painkiller Oxycontin (oxycodone).

The move comes after a Supreme Court ruling last June had invalidated Purdue's previous settlement arrangement. Members of the Purdue-owning Sackler family would contribute between around $6.5 billion to $7 billion over 15 years, which is about $1 billion more than had been agreed in the earlier plan.