Endo International PLC has started negotiations with its lenders and senior bondholders about a possible restructuring of more than $8 billion in debt as the drugmaker faces litigation over opioid sales, WSJ Pro Bankruptcy reported. Lenders initiated the discussions after the pharmaceutical company reported a sharp drop in quarterly earnings earlier this month stemming from the loss of exclusive rights over a key drug. Endo, which faces about 3,500 lawsuits from state and local governments and healthcare providers over claims that it helped fuel the opioid addiction epidemic, has been warning of the risk of a bankruptcy filing in its regulatory disclosures since last year. Gibson, Dunn & Crutcher LLP, a law firm representing the lenders, has entered confidential discussions with the company, although the lenders haven’t yet signed confidentiality agreements to be able to view proprietary information. The company, which has reached settlements with a handful of state and local governments over opioid liabilities, faces thousands more lawsuits it hasn’t resolved. Endo, which is domiciled in Ireland following a 2014 corporate tax inversion and has operations in Malvern, Pa., this month reported a drop in first-quarter earnings that pushed down the prices on its loans and bonds.
