Purdue Pharma’s proposed bankruptcy plan of reorganization is now being voted on by claimants and creditors. After the voting period, the Bankruptcy Court will hold a Confirmation Hearing for the Bankruptcy Court to consider whether to approve the plan. The Confirmation Hearing is scheduled for August 9, 2021.
If you filed a claim before the deadline approved by the Bankruptcy Court (July 30, 2020), you may be eligible to vote on the plan before the Confirmation Hearing. Your vote is important, as it will help determine how claims are handled by the Bankruptcy Court.
Your vote must be received by July 14, 2021 to be considered. If you are eligible to vote and wish to vote online, you will need the Unique E-Ballot ID# that was provided with your ballot. If you want to object to the plan, objections must be submitted by July 19, 2021.
WHAT HAPPENS IF THE PLAN IS CONFIRMED?
If the plan is confirmed, anyone with an actual or potential claim against Purdue Pharma L.P. or any of its affiliated debtors, or with an actual or potential claim against Sackler family members, and certain other individuals and related entities, relating to Purdue Pharma L.P. and its affiliated debtors (including Purdue prescription opioids, like OxyContin®, or other prescription opioids manufactured, marketed, or sold by Purdue), will be bound by the terms of the plan, including the releases and injunctions contained therein.
In return for providing the releases, claimants who timely filed a claim will be eligible to participate in the trust distribution process. By following the trust distribution procedures, claimants may be eligible to receive recoveries from the applicable trust established pursuant to the plan. For example, holders of personal injury claims, including holders of NAS personal injury claims, are eligible to receive recoveries from the Personal Injury (“PI”) Trust.
Purdue will be dissolved. After emergence from Chapter 11, its operating assets will be transferred to a newly formed company with a public-minded mission of addressing the opioid crisis. The new company will be held to the highest standards of conduct, including a prohibition restricting the promotion of opioid products to healthcare professionals. The new company will ultimately be owned by a new National Opioid Abatement Trust established for the benefit of the American people. State and local governments will neither own, nor operate the new company.
The Sackler families currently have no role in Purdue Pharma, and will have no involvement in the new company. The Sackler families will sell nearly all of their interests in their foreign pharmaceutical businesses, and members of the Sackler families will be prohibited from future active participation in the business of making and selling opioids. Under the proposed plan, the Sackler families have agreed to pay $4.275 billion over nine years, in addition to the $225 million previously paid to the United States to resolve civil claims, for a total settlement of $4.5 billion.
SACKLER FAMILY RELEASES
The plan includes releases of any actual or potential claims against Sackler family members, the owners of Purdue Pharma, and certain other individuals and related entities, relating to Purdue Pharma L.P. and its affiliated debtors (including Purdue prescription opioids, like OxyContin®, or other prescription opioids manufactured, marketed, or sold by Purdue). In addition, certain claims against Sackler family members may be asserted only against trusts established under the plan. If the plan is approved, creditors will be bound by these provisions, regardless of whether they filed a claim or voted to accept or reject the plan.
- Deadline to Vote on the Plan: July 14, 2021, at 4:00 p.m., prevailing Eastern Time
- Deadline to Object to the Plan: July 19, 2021, at 4:00 p.m., prevailing Eastern Time
- Allowance Request: July 19, 2021, prevailing Eastern Time
- Confirmation Hearing: August 9, 2021, at 10 a.m., prevailing Eastern Time
HOW TO VOTE ON THE PLAN
The deadline for voting on the plan is on July 14, 2021, at 4:00 p.m., prevailing Eastern Time (the “Voting Deadline”). If you received a Solicitation Package, including a Ballot and intend to vote on the plan you can submit your vote online, by mail or by hand. Whichever method you choose, you must follow the instructions on your ballot carefully. To submit your vote online, visit VOTE HERE, click “Submit E-Ballot”, and follow the instructions to submit your E-Ballot. For your E-Ballot login credentials and further details, please see your Ballot. To submit your vote by mail or by hand, follow the Ballot instructions carefully, complete all of the required information on the Ballot, and sign and return your completed Ballot according to and as set forth in detail in the voting instructions so that it is actually received by Prime Clerk LLC on or before the Voting Deadline. A failure to follow such instructions may disqualify your vote.
If your attorney submitted a notice stating that they will vote on your behalf, you should contact your attorney.
HOW TO OBJECT TO THE PLAN
The deadline for filing objections to the plan is July 19, 2021, at 4:00 p.m., prevailing Eastern Time (the “Plan Objection Deadline”). All objections to the relief sought at the Confirmation Hearing must (a) be in writing, (b) conform to the Federal Rules of Bankruptcy Procedure and the Local Bankruptcy Rules for the Southern District of New York, (c) be filed with the Court (i) by attorneys practicing in the Bankruptcy Court, including attorneys admitted pro hac vice, electronically in accordance with General Order M-399 (which can be found at http://www.nysb.uscourts.gov), and (ii) by all other parties in interest, on a CD-ROM, in text-searchable portable document format (PDF) (with a hard copy delivered directly to Chambers), in accordance with the customary practices of the Bankruptcy Court and General Order M-399, to the extent applicable, and (d) be served in accordance with the Second Amended Order Establishing Certain Notice, Case Management, and Administrative Procedures entered on November 18, 2019 [D.I. 498], on (i) counsel to the Debtors, Davis Polk & Wardwell LLP, 450 Lexington Avenue, New York, New York 10017 (Attention: Marshall S. Huebner, Benjamin S. Kaminetzky, Eli J. Vonnegut and Christopher S. Robertson), (ii) counsel to the Creditors Committee, (A) Akin Gump Strauss Hauer & Feld LLP, One Bryant Park, New York, New York 10036 (Attention: Arik Preis, Mitchell P. Hurley, Sara L. Brauner and Edan Lisovicz) and (B) Cole Schotz P.C., 500 Delaware Avenue, Suite 1410, Wilmington, Delaware 19801 (Attention: Justin R. Alberto), and (iii) the Office of the U.S. Trustee for the Southern District of New York, 201 Varick Street, Suite 1006, New York, New York 10014 (Attention: Paul K. Schwartzberg),so as to be actually received on or before the Plan Objection Deadline.
HOW TO FILE AN ALLOWANCE REQUEST
If you received a Notice of Non-Voting Status stating that you are not entitled to vote on the plan and believe you should be entitled to vote, you can challenge the disallowance of your claim for voting purposes. To do so, you must file a motion with the Court for an order pursuant to Bankruptcy Rule 3018(a) temporarily allowing such claim for voting purposes (a “Rule 3018 Motion”). Any Rule 3018 Motion must be filed on or before 4:00 p.m., prevailing Eastern Time on July 19, 2021, and served in accordance with the Second Amended Order Establishing Certain Notice, Case Management, and Administrative Procedures entered on November 18, 2019 [D.I. 498].