Purdue Must Explain Payouts, Shield for Sacklers, Watchdog Says

April 22, 2021, 8:01 PM

Purdue Pharma LP is facing a federal bankruptcy watchdog’s opposition to disclosures supporting its reorganization plan over concerns that the company hasn’t explained how it intends to classify and pay out billions of dollars worth of claims.

The OxyContin manufacturer’s disclosure statement also fails to adequately explain liability releases for the Sackler family, the Justice Department’s U.S. Trustee’s Office said Wednesday. The Purdue owners are slated to contribute $4.2 billion to the bankruptcy estate as part of a settlement in the case.

The disclosure statement doesn’t analyze what creditors would get if the company were liquidated in Chapter 7, and...

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