As part of the proposed plan, the Sackler family has agreed to pay an additional $ 4.2 billion over the next nine years to resolve several civil claims.
“The vast majority of debtors’ assets will go to programs to alleviate the opioid crisis. Billions of dollars will flow into trusts established for the benefit of states and localities, as well as other groups of creditors such as Native American tribes.” hospitals, and children with a history of neonatal withdrawal syndrome and their guardians.Each trust will require funds to be devoted exclusively to opioid reduction efforts and there will be transparency to ensure this, ”the court documents state.
The restructuring plan is over 300 pages long. It details how the opposing pharmaceutical company plans to transfer billions of dollars and operating assets to a start-up company, whose stated mission is to address the country’s opioid crisis.
Purdue Pharma said in a press release that state and local governments will not own or operate the new company and that more than $ 10 billion will be spent on “providing, at cost price, millions of doses of treatment.” opioid addiction that can save lives and drugs to reverse the overdose “. . “
Purdue Pharma’s plan will also distribute funds through two newly created national opioid reduction trusts: the National Opioid Abatement Trust (the “NOAT”) and the Tribe Trust, which will be dedicated to resolving Native American tribe claims.
“All proceeds distributed to NOAT and the Tribe Trust will be devoted exclusively to programs designed to mitigate the opioid crisis and for no other purpose (other than to fund program administration and pay commissions and costs). Debtors believe that financing these dedicated reduction funds, while assigning significant value for distribution to PI Claims holders, is in the best interests of creditors and the U.S. public, ”the court documents state.
A hearing is scheduled to approve the plan on April 21st.
The Sacklers have already paid $ 225 million for an initial agreement to satisfy their civil agreement with the U.S. Department of Justice, and people associated with the Sacklers have agreed that they are “prohibited from engaging in the manufacture or sale of ‘opioids, with the exception of must agree’, states in court documents.