Endo International PLC junior bondholders have formed a group to press the drugmaker not to file for bankruptcy as it faces opioid-related lawsuits and a drop in earnings, WSJ Pro Bankruptcy reported. The group of institutional investors said on Monday that it has proposed several out-of-court transactions, including a bond swap, that would enable Endo to continue operating its business and investing in new drugs. The bondholder group, which is advised by law firm White & Case LLP and financial adviser GLC Advisors & Co. LLC, said that “a near-term bankruptcy filing is unnecessary” due to the company’s strong liquidity and free cash flow generation. As of March 31, Endo had cash on hand of more than $1.4 billion and $640 million of availability under its revolving credit line. There are no significant debt maturities until October 2024, the group said. Endo, has more than $8 billion in debt, of which about $1.3 billion are unsecured, or junior, bonds. The company has recently started talks with a separate group of lenders and senior bondholders about a potential restructuring. One of Endo’s most pressing challenges is litigation alleging it helped fuel the opioid addiction epidemic. While the company has reached settlements with a handful of state and local governments over opioid liabilities, there are still thousands more outstanding lawsuits it hasn’t yet resolved. The company has been warning of the risk of a bankruptcy filing in its regulatory disclosures since last year.
