Reporting from CNBC indicates that Purdue Pharma, the maker of OxyContin, has proposed a $10 billion plan to exit bankruptcy. According to sources, the exit plan not only includes a significant contribution of more than $4 billion from members of the Sackler family who own the Connecticut-based pharmaceutical giant, but also calls for the pharmaceutical giant to be transformed into a different kind of company that plans to funnel profits into the fight against the nation’s intractable opioid crisis. [CNBC; Mar. 16, 2021].
Bloomberg reports that the US Supreme Court recently declined to hear an appeal regarding how the lending industry reports canceled debt on consumer credit reports, an issue central to the “fresh start” that consumers receive after bankruptcy. The appeal sought to restrict consumers from joining together in class action lawsuits accusing the banks of violating individuals’ bankruptcy discharges by continuing to include old, discharged debt on credit reports. By declining to hear the appeals of lower court rulings, the US Supreme Court effectively left intact those rulings that bankruptcy law blocks banks from using provisions in credit card agreements to force such claims into mandatory arbitration. [Bloomberg; March 8, 2021].
The Wall Street Journal reports that HighPoint Resources Corp. filed for chapter 11 protection on March 15, 2021, with hopes that a quick stint in chapter 11 will foster a merger with Bonanza Creek Energy Inc., another Colorado oil-and-gas operator. Citing Highpoint’s unmanageable $765 million debt-load and last year’s oil-price war between Russia and Saudi Arabia last as the catalysts for Sunday’s filing, recent court papers indicate that HighPoint’s bankruptcy plan and merger with Bonanza Creek is designed to swap $625 million in unsecured debt for equity in the combined company. [WSJ; Mar. 15, 2021].
Forbes analyzes the challenges and prospects of AMC Entertainment Holdings Inc., the nation’s largest movie theatre chain, following a $917 million cash infusion completed in December 2020 and recent signs of lifting of global lockdowns. [Forbes; Mar. 5 2021].