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Purdue Pharma begins Chapter 11 bankruptcy journey

By TOM MURPHY and ANNE D’INNOCENZIO

NEW YORK (AP) — Purdue Pharma gets its day in court Tuesday after the OxyContin maker filed for bankruptcy and negotiated a potential multi-billion dollar settlement to resolve thousands of lawsuits.

An initial hearing will be held in federal court in White Plains, New York, for the Chapter 11 bankruptcy case. Purdue filed for bankruptcy protection late Sunday, the first step in a plan it says would provide $10 billion to $12 billion to help reimburse state and local governments and clean up the damage done by powerful prescription painkillers and illegal opioids, including heroin.

These drugs have been blamed for more than 400,000 deaths in the U.S. in the past two decades.

Two dozen states have signed on to the settlement plan along with key lawyers who represent many of the 2,000-plus local governments suing Stamford, Connecticut-based Purdue Pharma. But other states have come out strongly against it.

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WHAT CAN WE EXPECT FROM THIS INITIAL COURT APPEARANCE?

These generally focus on housekeeping and ensuring that the company can keep paying the bills as an ongoing operation during its Chapter 11 bankruptcy.

According to the court docket, Judge Robert Drain will hear motions on authorizing payments of wages to employees, critical vendors, utilities and other key parties.

Fordham Law Professor Richard Squire said Drain will likely hear from lawyers objecting to the filing and describing it as a “bad faith claim.” Drain may table those arguments for another day.

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WHAT KEY ISSUES WILL THE JUDGE DECIDE?

Drain will eventually decide whether to approve or reject the settlement or seek modifications.

This is hardly a standard bankruptcy case. Because so many states objected to the settlement, it could complicate the process. Members of the Sackler family, which owns Purdue, are still trying to get more states to sign on.

Drain will preside over whether the suits against the Sacklers in state courts will be able to move forward, and what will happen to the company itself. Under the tentative settlement deal, it would continue to operate, but with profits used to pay for the settlement. Another alternative? Drain could order the company to be sold.

A single large settlement often is seen as the best way to resolve cases like these, bankruptcy attorney Jerry Reisman said. He noted that it would essentially put money in a giant pot to be divided fairly, and it would cut the costs of bringing separate cases through different courts.

“Everybody shares in some orderly manner,” he said.

Without a big settlement, all the claimants could wind up in a race to litigate in the other courts and get a judgment before the company runs out of money.

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WHO IS JUDGE DRAIN?

Drain is a former bankruptcy attorney with a Columbia University law degree. He serves as a U.S. Bankruptcy Judge for the Southern District of New York.

He has presided over some high-profile Chapter 11 cases involving companies like Hostess Brands and Sears. In the latter, Drain earlier this year gave hedge fund mogul Eddie Lampert a second chance to revive the iconic brand and save 45,000 jobs.

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HOW LONG WILL THE BANKRUPTCY PROCESS TAKE?

A complicated case like this could take up to a year but legal experts believe the parties involved want a fast settlement.

The longer a company remains in bankruptcy, the more is spent attorney fees and other costs. But a modification to the initial settlement to satisfy more cases could delay the case.

Purdue has said that finalizing the settlement could take at least six months.

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Murphy reported from Indianapolis.

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AP Reporter Geoff Mulvihill in Cherry Hill, New Jersey, contributed to this report.

High school volleyball

Monday night in high school volleyball, North Mahaska defeated BGM three sets to none, Lynnville-Sully swept HLV and Iowa Valley 3-0 over Keota.

Tuesday night (9/17), Oskaloosa’s volleyball team hosts Newton in a 7:00 game at the high school.  Other volleyball tonight has Ottumwa at Des Moines Hoover, Norwalk at Pella, Indianola at Pella Christian, Grinnell at Dallas Center-Grimes, Davis County at Knoxville and Clarke at Albia.

Oskaloosa Fire Chief Neff Retiring

Oskaloosa Fire Chief Mark Neff says he’s retiring.  Neff broke the news at Monday’s (9/16) Oskaloosa City Council meeting.  He says he’ll be taking a job with the State Fire Marshal’s Office.  Neff says it feels like the right time to make a change.

“I saw this opportunity and it’s like ‘I need to try this.  I need to step away from this.’  We’ve had a heck of a good run, but I think it’s time to let somebody else….there are some other projects that are big enough.  I’m not going to be here long enough.  I want them to take the reigns.”

Neff has been Oskaloosa’s fire chief since 2008 and has been with the fire department for 24 years. His last day as Oskaloosa fire chief will be October 17.

Ottumwa couple accused of child endangerment

A couple from Ottumwa is accused of leaving their three year old daughter unattended. Monday morning (9/16), Ottumwa Police got a call about a small child left alone in the 300 block of North Court Street. After being unable to find the girl’s parents, Police put her picture on social media. That led to relatives of the girl contacting Police. Officers determined the girl lives with her mother, 19-year-old Faith Knedler, an 18 month old half-brother and the half-brother’s father, 22-year-old Colby Rysdam. Knedler and Rysdam have both been charged with one count of child endangerment.

Taylor Swift returns to “The Voice”

Taylor Swift is returning to “The Voice.” The NBC talent competition just announced that Taylor will turn up this season as what they’re calling a “Mega Mentor,” which will have her offering advice to all the teams ahead of the knockout rounds.

Taylor’s participation was announced with a promo featuring coaches John Legend and Blake Shelton, in which they discuss who could possibly be the new mega mentor.

“I think the person’s supposed to be one of the most successful people in music,” Legend says, with Blake chiming in, “that’s true, but I can’t be cause I’m already here.” At that point Taylor walks out of her trailer and they say hi, with Legend continuing “I wonder…” before it hits them.

This won’t be Taylor’s first visit to “The Voice.” She served as a mentor during season seven, and also performed on last season’s finale.

Season 17 of “The Voice” debuts Monday.

This day in 1960, Loretta Lynn makes her Grand Ole Opry debut. 

Today in 1960, Loretta Lynn made her Grand Ole Opry debut.

Loretta Lynn told the newspaper, The Tennesseean: “I came out the back of the building, and I was hollering, ‘I’ve sung on the Grand Ole Opry! I’ve sung on the Grand Ole Opry!’”

She was 25 at the time, and was just signed to the Zero label, before she began her longtime association with Decca. Lynn had made her first country singles chart appearance in June of that same year with ‘I’m A Honky Tonk Girl.’ It reached No. 14 during it’s nine-week run.

Sandy the Tabby Cat

Sandy, a 2 year old brown tabby cat, is our KBOE/KMZN Pet of the Week.  Sandy has been at the shelter since March and gave birth to a litter of kittens in April.  Now that she has raised her family she is ready to find her furever home!  Sandy’s a mellow girl and loves to just lay back and watch the action.  She would love to have her own bed and windowsill to watch the birds and squirrels.  $10 and an approved application will make Sandy all yours!  Call Stephen Memorial Animal Shelter at (641) 673-3991 for more information about Sandy or a wide variety of other loving and adoptable pets!

The Highwomen Debut In The Top Ten

The self-titled debut album from all-female supergroup The Highwomen has debuted in the Top Ten on the all-genre “Billboard” 200 Album chart.

The band, made up of Brandi Carlile, Maren Morris, Natalie Hemby and Amanda Shires, moved 34,000 equivalent album units, 29,000 in traditional sales, to debut at ten.

“Thank you, thank you, thank you to everyone who has listened, shared, written about, and supported this album already,” the band recently tweeted. “This is just the beginning.”

 

Source: Billboard

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