After struggling with the debt incurred due to opioid litigation settlements, Endo International, the Ireland-based pharmaceutical company with U.S. headquarters in Malvern, has filed for Chapter 11 bankruptcy protection, writes Ryan Mulligan for the Philadelphia Business Journal. 

Endo will be acquired by its creditors as part of a restructuring support agreement with the holders of 55 percent of its first-lien debt. 

The company currently has debts that total $8 billion. According to filings, Wells Fargo Bank is owed more than $1.3 billion. 

Endo, which entered Chapter 11 proceedings on Wednesday, accepted a stalking horse bid from its largest group of creditors of $6 billion in debt forgiveness. This will be subject to higher or better offers. 

According to Endo CEO Blaise Coleman, this agreement will help the pharmaceutical company move toward closing the opioid-related lawsuits that have been weighing it down and “move forward as a new Endo and reach our full potential.” 

“This process will enable us to continue our ongoing business transformation, including investing in our core areas of growth, as we work to execute a transaction to strengthen our balance sheet and secure a strong tomorrow,” he said. 

Read more about Endo International in the Philadelphia Business Journal.