A majority of Purdue Pharma's more than 120,000 creditors have voted to approve the company's bankruptcy plan, The New York Times reported July 27.
Ninety-five percent of cities, states, tribes, insurers and families favor the plan, Purdue Pharma said, according to the Times. The company will release the final vote tallies Aug. 2, a week before a court hearing in which final objections to the plan will be heard. Purdue Pharma told the Times it does not expect the bankruptcy plan to change.
Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York must approve the plan before it is implemented. He's expected to rule shortly after the court hearing, according to the Times.
A handful of states have filed objections to the plan, and the two divisions of the U.S. Justice Department described it as flawed and unconstitutional, but the efforts seem unlikely to block the deal, the Times reported.
Under the bankruptcy plan, the owners of Purdue Pharma — the Sackler family — would pay at least $4.5 billion of their personal fortune over nine years, as well as $255 million from a separate civil settlement with the Justice Department. Neither Purdue Pharma nor the Sacklers would admit to any wrongdoing in the settlements, and the bankruptcy plan would resolve thousands of lawsuits against both parties.
The Sacklers would give up control of the company under the plan, and the restructured company would get a new name and be run by an independently appointed board, the Times reported. Profits from OxyContin sales and addiction-reversal drugs would go to creditors' trusts, which would fund addiction prevention and treatment programs.
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