By Colin Kellaher
Shares of Endo International PLC slid more than 20% in early trading Thursday after the drugmaker said it was skipping a roughly $38 million interest payment due on some of its senior notes as it holds talks with creditors about a potential restructuring.
Endo, which has been weighed down by a debt load topping $8 billion and litigation alleging it helped fuel the opioid addiction epidemic, said it opted to enter a grace period that gives it 30 days to make the payment and avoid a default while the discussions continue.
Endo has been trying to reach a broad settlement with opioid claimants while exploring strategic options that would allow it to move forward if it can't reach a deal.
The company recently began talks with a group of lenders and senior bondholders about a potential restructuring, while its junior bondholders have formed a separate group to press Endo not to file for bankruptcy, a possibility the drugmaker has been warning of since last year.
Endo noted that its decision to enter the grace period wasn't driven by liquidity constraints, as it had roughly $1.4 billion in cash at the end of March, and that the move won't affect its day-to-day operations.
Endo shares were recently changing hands at 40 cents, down 22%.
--Alexander Gladstone and Soma Biswas contributed to this article.
Write to Colin Kellaher at email@example.com
(END) Dow Jones Newswires
June 30, 2022 10:11 ET (14:11 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.