What We’re Reading This Week [August 1, 2022]
According to The Wall Street Journal, Teva Pharmaceutical Industries Ltd. has reached a national settlement agreement worth nearly $5 billion, including about $3.7 billion in cash, to resolve thousands of lawsuits over its alleged role in the opioid crisis. The plaintiffs’ executive committee, which represents local and state governments and Native American tribes, reported that the $3.7 billion includes about $650,000 earmarked in previously settled cases. The abatement funds will be spread over 13 years, with Teva also carrying the option of donating $1.2 billion worth of a generic version of its overdose drug—Narcan—for the next decade or an agreed upon equivalent in cash. Once documentation is finalized, a sufficient number of plaintiffs will need to sign on to the deal, which would end the vast majority of opioid litigation. The proposed settlement is the latest move by a company seeking to resolve the costly litigation. [WSJ; July 26, 2022]
Bankrupt cryptocurrency platform Voyager Digital has challenged a proposed Chapter 11 plan from FTX.com and Alameda Ventures Ltd., as reported by Law360, arguing that the AlamedaFTX group’s plan provides a “lowball bid” that seeks to liquidate Voyager’s digital assets. Specifically, Voyager asserts that the AlamedaFTX proposal would not provide as much value as the stand-alone Chapter 11 plan the debtor filed alongside its bankruptcy petition earlier this month and might serve to chill bidding, as it was made via press release and not through the bidding procedures proposed by Voyager. It’s a lowball bid dressed up as a white knight rescue,” Voyager said in its response. Voyager, which purportedly once held more than $5.9 billion in cryptocurrency assets, filed for Chapter 11 protection on July 5th in the face of plummeting crypto values. Bids made pursuant to Voyager’s bid procedures are due by August 26th, while AlamedaFTX said it would be able to sign a sale agreement by July 30th, with a target close of August 17th. [Law360; July 25, 2022]
Discount home-goods retailer Tuesday Morning is exploring restructuring options, including its potential second bankruptcy filing in less than two years, according to Bloomberg. While the company has reportedly agreed to new debt financing deals to provide for much-needed breathing room, restructuring talks are in the early stages and could materially change in the coming months as the company fights against sustained inflationary pressures, inventory surplus, and supply-chain disruptions. [Bloomberg; July 20, 2022]
