Purdue Pharma receives 150-day extension of exclusive plan periods

By Caroline Salls

Pittsburgh, July 27 – Purdue Pharma LP obtained a second extension of its exclusive periods for filing and soliciting vote on a Chapter 11 plan, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The company’s exclusive plan-filing period was extended by 150 days through Dec. 10 and the solicitation period through Feb. 8, 2021.

According to the motion, Purdue and its key constituencies are engaged in a complex mediation process to address allocation disputes among creditor groups, which must be addressed in order to structure a plan of reorganization.

“The debtors, fiduciaries for all, are and remain committed to preserving and maximizing the value of the estates by moving these cases toward plan confirmation and emergence as expeditiously as possible,” the motion said.

“But, in light of the immense complexity of these cases and the numerous difficult issues to be addressed relating to value allocation and plan structuring among the debtors’ many creditor constituencies, it is also not realistic to expect the debtors to advance from the ‘early stages’ of the Chapter 11 process in late March to having a confirmable plan of reorganization on file in July.”

Purdue Pharma is a Stamford, Conn.-based drug manufacturer. It filed for Chapter 11 bankruptcy on Sept. 15, 2019 under case number 19-23649.

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