Lawyer group recommends Marion County accept Purdue bankruptcy plan
Marion County Commissioners will consider an attorney’s recommendation to approve a Purdue bankruptcy plan at an upcoming meeting.
The bankruptcy plan was part of a memo from the Romano Law Group, which represents Marion County among other groups in the litigation.
Purdue filed for bankruptcy in September 2019 after being named a defendant in thousands of civil lawsuits seeking damages for opioid-related injuries to governments, hospitals and others.
Now, the proposed bankruptcy plan aims to resolve debts with private and public creditors, including an allocation to state and local governments.
According to the plan, the Sackler family, who are shareholders of Purdue, will contribute $ 4.275 billion over a series of years. In addition, the company will create a new entity owned by public creditors “whose continued operation and final sale can generate $ 1 billion to $ 2 billion in assets,” the Romano Law Group memo reads.
The combined assets of the bankruptcy estate will be used to pay various groups of private creditors including insurers, hospitals and individual bodily injury claimants.
The remaining residual amount will be divided among state, local and tribal governments. The law firm says about 7% of “public entity funds are allocated to the state of Florida.”
Marion County commissioners are now to say whether Marion County will support Purdue Pharma LC’s bankruptcy plan at their next meeting, which is scheduled for Tuesday, July 6 at 9 a.m. The county has until July 12 to notify the Romano Law Group of its decision.