Official Committee of Unsecured Creditors of Purdue Pharma L.P. and Affiliated Debtors

Case Number:

19-23649

PLAN AND DISCLOSURE STATEMENT

On March 18, 2025, Purdue filed an amended plan of reorganization (the “Plan”) incorporating the terms of a new mediated settlement with Purdue and Purdue’s owners, the Sackler families, following extensive negotiations after the Supreme Court invalidated Purdue’s prior plan. The Plan provides for, among other things: (i) almost $1 billion of value to be paid to creditors by Purdue in exchange for the settlement of estate claims and (ii) an additional contribution of up to $6.5 billion to be paid to creditors by the Sackler families in exchange for the settlement of direct civil claims against them. To effectuate this direct settlement with the Sackler families, the Plan offers each creditor the opportunity to grant voluntary third-party releases to the Sackler families, among other parties (the “Third-Party Releases”), by opting into such releases through the Plan ballots. Information regarding how to vote on the Plan and grant the Third-Party Releases, the settlement with the Sackler families and the Chapter 11 Cases is contained in the disclosure statement for the Plan (the “Disclosure Statement”).

On June 20, 2025, the Bankruptcy Court entered an order approving the Disclosure Statement and solicitation and voting procedures with respect to the Plan, which, among other things, established September 30, 2025 at 4:00 p.m. (ET) as the deadline for voting on the Plan and scheduled a hearing before the Bankruptcy Court regarding confirmation of the Plan for November 10, 2025, at 10:00 a.m. (ET).

You may review the Plan, the Disclosure Statement and related solicitation materials by clicking the “Solicitation Materials” link on the tab on the left of this page.


UCC RECOMMENDATION REGARDING PLAN AND THIRD-PARTY RELEASES

The UCC encourages you to (i) vote to accept the Plan and (ii) grant the Third-Party Releases contained in the Plan or in any applicable direct release settlement agreement, as set forth in the UCC Plan Support Letter, which was provided to creditors in connection with the Disclosure Statement, Plan and solicitation materials. The UCC’s recommendation, as set forth in the UCC Plan Support Letter, is coped below for reference. For more detail on the Plan and the Chapter 11 Cases, please review the Disclosure Statement, the Plan and the UCC Plan Support Letter. More information regarding the Chapter 11 Cases may be found at the following webpage: https://restructuring.ra.kroll.com/purduepharma.

(1) PLAN SETTLEMENTS: The Plan represents a settlement with Purdue and Purdue’s owners, the Sackler families, that is the product of close to a year of negotiation among numerous parties and takes into account the challenging facts and circumstances of the Chapter 11 Cases—including the failure of Purdue’s prior plan of reorganization following the June 2024 decision by the Supreme Court barring non-consensual third-party releases. Specifically, the Plan provides for a contribution of up to $6.5 billion by the Sackler families in exchange for the settlement of civil claims against them, which is to be accomplished in part by the opportunity for each creditor to grant voluntary Third-Party Releases in return for consideration. In addition, the Plan provides for almost $1 billion to be paid by Purdue to creditors, making the total nominal settlement value no less than $6 billion (subject to reduction based on participation rates) and up to close to $8 billion.

(2) VOTE IN FAVOR OF THE PLAN: The UCC strongly encourages you to vote to accept the Plan because it is the UCC’s view that under the current circumstances of the Chapter 11 Cases, the Plan represents the best outcome. Any other option would rely in large part on highly uncertain and time-consuming litigation. This would include both litigation against the Sacklers to try to recover any value, as well as the litigation required of each claimant to prove the validity and value of their claims against potential objections by various parties. These litigation paths are highly uncertain, expensive and likely would take years to pursue. In short, the Plan provides for faster and more certain monetary recoveries for all claimants than any other available alternative.

(3) GRANT THE THIRD-PARTY RELEASES: The UCC strongly encourages you to grant the Third-Party Releases because (a) your decision to do so affects the treatment of your claim and the claims of others and (b) any potential litigation against the Sacklers on your direct claims will be speculative, time-consuming, expensive and subject to very limited recoveries. The Plan provides that money will be retained by the Sacklers from the total settlement value to account for each claimant who does not grant the Third-Party Releases, and there will be a reserve to fund litigation costs (including settlements and judgments), reducing the total amount of money that can be distributed to claimants. And with respect to each claimant specifically, if you do not grant the Third-Party Releases, you will be surrendering the money you would otherwise receive directly from the Sacklers if you granted the release, and your claim against Purdue may be subject to dispute—meaning you may not receive any value from Purdue if other parties object and your claim process is unsuccessful. For the avoidance of doubt, if you do not grant the Third-Party Releases and you successfully litigate your claim against the Sacklers, at your own expense, you may ultimately receive more money than you would obtain under the Plan, but the UCC believes this is a highly unlikely outcome.


Creditor Inquiries

If you would like to ask questions of the UCC, you may contact lead counsel to UCC at purduecreditorinfo@akingump.com or:

Akin Gump Strauss Hauer & Feld LLP
Purdue Claims Information
One Bryant Park
New York, NY 10036