Endo International, the Dublin-based pharmaceutical company with its U.S. headquarters in Malvern, recently disclosed in a filing with the SEC that it will not be making an interest payment on its senior notes, fueling speculation that the company might soon file for bankruptcy protection, writes John George for the Philadelphia Business Journal.
In the documents submitted on June 30, Endo said it had a 30-day grace period to make the $38 million interest payment before such non-payment is considered an “event of default.”
The company said it has decided to enter the grace period “as it continues discussions with certain creditors in connection with the company’s evaluation of strategic alternatives.”
Endo did not make the decision due to liquidity constraints, as it has around $1.4 billion in cash as of March 31. The decision will not impact the company’s day-to-day operations.
In SEC filings from last year, Endo said that since it has not managed to settle the majority of its opioid-related claims in the previous years, it was exploring a variety of potential actions as part of the company’s contingency planning, with a bankruptcy filing possibly among them.
Read more about Endo International in the Philadelphia Business Journal.