Endo’s Creditors Oppose ‘Shortcut’ $6 Billion Bankruptcy Sale

Endo International Plc creditors are objecting to the pharmaceutical maker’s proposed $6 billion sale of its assets to a lender group, arguing that the “shortcut” deal would shut out many who were harmed by its opioid products.

The credit bid deal would exclude “countless creditors with claims based on opioid-related harm, including the public schools,” the Rochester City School District and other public school districts said in a court filing with the US Bankruptcy Court District of Southern District of New York Friday.

Tensor Limited, formed by a group of Endo’s first-lien lenders, submitted a “stalking horse” bid to buy the assets in exchange for wiping out $6 billion of debt owed. Last month, Endo canceled the bankruptcy auction and agreed to proceed with the offer, saying no other bid was likely.

“All remaining creditors—representing billions of dollars in claims—would be left to compete among themselves over what little is left behind,” according to the filing.

America’s public schools, which have been harmed by Endo and opioid defendants, will not “be afforded any relief at all,” the creditors claimed.

Several Canadian provinces, including British Columbia also said in a separate filing Friday that they opposed Endo’s sale plan, concerned about the fate of their roughly $66 billion of claims.

Endo didn’t immediately reply to a request for comment.

The case is Endo International plc, et al., Bankr. S.D.N.Y., No. 7:22-bk-22549, 7/14/23.