The judge overseeing Purdue Pharma’s chapter 11 case has tentatively approved $16.1 million in retention payments for 506 of the company's employees but conditioned his ruling on the OxyContin maker’s successful reorganization, Reuters reported. During a virtual hearing, U.S. Bankruptcy Judge Robert Drain in White Plains, New York, said that he would sign off on the payments — which he said are not the same as bonuses because they are part of the employees’ annual compensation — as long as Purdue doesn’t wind up liquidating in bankruptcy, which at this point in the case is a long shot. Meanwhile Purdue postponed a hearing on up to $5.4 million in proposed incentive bonuses for five top executives until Aug. 19. The company, which filed for chapter 11 protection in September 2019 to address thousands of lawsuits accusing it of fueling the opioid crisis through deceptive marketing, is expected to begin a multi-day hearing to secure Judge Drain’s approval of its restructuring plan and settlement with individuals, states, municipalities, hospitals and others on Aug. 9.
