Drugmaker Endo misses $38 million interest payment amid bankruptcy talks

Pharmaceutical tablets and capsules are laid out in the shape of a US dollar sign on a table in this illustration taken in Ljubljana August 20, 2014. REUTERS/Srdjan Zivulovic

Join now for FREE unlimited access to Reuters.com


June 30 (Reuters) – Drugmaker Endo International (ENDP.O) said on Thursday it had missed a $38 million interest payment, amid talks with a group of unsecured bondholders who urged the company to avoid filing for bankruptcy.

Endo, who has been weighed down by litigation over the opioid epidemic in the United States, has discussed the possibility of filing for bankruptcy protection in several recent public filings.

Other drug companies that have filed for Chapter 11 to address opioid-related claims include Purdue Pharma, maker of OxyContin, and Mallinckrodt PLC (MCDG.MU), a generic opioid maker that recently emerged from the bankruptcy.

Join now for FREE unlimited access to Reuters.com


Endo, based in Dublin, Ireland, said in a filing with the U.S. Securities and Exchange Commission on Thursday that the missed loan payment will not have an immediate impact on day-to-day operations because the company has 1 $.4 billion in cash. The missed payment triggers a 30-day window before an official default on his loan.

Endo did not immediately respond to a request for comment.

A group of debenture holders recently formed to pressure the company to avoid bankruptcy. The group said on Monday it had offered other restructuring options, including a cash takeover bid or a debt-for-debt swap, that would reduce Endo’s interest charges without disrupting a filing at the chapter 11.

Endo reported $660 million in total funded debt maturities through the end of March 2027.

State and local governments have filed more than 3,000 lawsuits against drugmakers, distributors and pharmacies alleging they helped fuel the deadly opioid epidemic in the United States. Opioids were implicated in more than 80,000 overdose deaths in 2021, according to statistics produced by the White House’s Office of Drug Control Policy.

Endo has settled multi-state opioid lawsuits in recent months, agreeing to pay $65 million to Florida, $26 million to West Virginia and $25 million to Alabama.

Join now for FREE unlimited access to Reuters.com


Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi and Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

Source link

Elaine R. Knight