Marion County commissioners will consider an attorney’s recommendation to approve a Purdue bankruptcy plan during an upcoming meeting.
The bankruptcy plan was part of a memo from the Romano Law Group, who represents Marion County among other groups in the litigation.
Purdue filed for bankruptcy in September of 2019 after being named as a defendant in thousands of civil lawsuits seeking damages for opioid-related injuries to governments, hospitals, and others.
Now, the proposed bankruptcy plan seeks 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 the shareholders of Purdue, will make contributions of $4.275 billion over a series a years. In addition, the corporation will create a new entity owned by the public creditors “whose continued operation and ultimate sale may generate $1-$2 billion in assets,” reads the memo from Romano Law Group.
The combined assets of the bankruptcy estate will be used to pay various groups of private creditors, including insurers, hospitals, individual personal injury plaintiffs.
The remaining residual amount will be allocated among state, local and tribal governments. The law firm says that approximately 7% of the “public entity funds are apportioned to the state of Florida.”
Marion County Commissioners must now give direction as to whether Marion County will support the Purdue Pharma L.C. Bankruptcy Plan during their next meeting, which is scheduled for Tuesday, July 6, at 9 a.m. The county has until July 12 to advise the Romano Law Group of its decision.