August 29, 2022
Paladin Labs Canadian Holding Inc. and Paladin Labs Inc., Canadian debtors which are part of a global specialty pharmaceutical group (collectively, "Endo"), obtained recognition of Endo's Chapter 11 proceedings under Part IV of the CCAA on August 19. Endo’s recent financial performance has deteriorated significantly, largely due to a 55% year-over-year decline in the first half of 2022 from sales of Vasostrict, a branded pharmaceutical that has been one of the company’s leading revenue generators over the last several years. Endo’s highly leveraged capital structure – which consists of funded debt obligations in the aggregate principal amount of approximately US$8.15 billion, which are guaranteed by the Canadian debtors – has become unsustainable as a result of the company’s declining financial performance. The company is also under significant financial pressure due to onerous litigation expenses incurred from defending more than 3,500 lawsuits in a number of jurisdictions, including the US and Canada, largely relating to the marketing and sale of prescription opioids. KSV was appointed as information officer. Canadian counsel is Goodmans for the companies, Bennett Jones for the information officer, Stikeman Elliott for the Ad Hoc First Lien Group, Davies for McKesson Canada Corporation and Osler for Sanis Health Inc., Shoppers Drug Mart Inc. and Loblaw Companies Limited.
By Dina Milivojevic