Latest news with #PlanofReorganization
Miami Herald
2 days ago
- Business
- Miami Herald
WeightWatchers takes drastic step to exit bankruptcy
Growing up, I always knew when it was "weigh-in day." My mom would slip into the kitchen in the early morning and emerge with her little tracker notebook tucked under one arm and a low-point snack in the other. I was fascinated. She had little bars in shiny wrappers, chocolate-covered pretzels that somehow counted as healthy, and a whole drawer of food labeled with blue and purple stickers. I remember trying some of her WeightWatchers snacks and being surprised by how much I liked them. Related: How psychedelic mushrooms are helping people unlock their potential WeightWatchers was more than just a diet brand back then. It was a community. An identity. It was built on accountability and structure and a little bit of ritual. So it's strange, now, to see the brand struggling. For years, it's faced declining membership, shifting trends, and fierce competition from newer, tech-driven health platforms. And while the company has tried to modernize by adding app integrations, personalized plans, and even embracing controversial GLP-1 medications-it hasn't been enough to avoid serious financial trouble. Now, the brand is making its biggest move yet. On June 17, WeightWatchers announced a major milestone: the court just greenlit its Plan of Reorganization. That means the company is finally on track to exit bankruptcy-potentially as soon as next week. Under the new plan, WeightWatchers is wiping out $1.15 billion in debt. That's more than 70% of what it owed, and it gives the brand a much-needed shot at stability. Here's what that looks like: lenders and noteholders are trading their claims for new loans and equity. Related: This new AI tool could change how you shop for makeup Existing shareholders? They're getting just 9% of the new company. A brutal haircut, but one that clears the path forward. CEO Tara Comonte called it a "meaningful turning point" and said the company is doubling down on what's next: focusing on lifestyle change, clinical care, and yes, GLP-1 medications like Ozempic and Wegovy. Through it all, the company stayed public. Now, with the paperwork nearly finalized, it's hoping to emerge with more speed, less baggage, and a clear runway to grow again. Let's be hasn't been the go-to name in weight loss for a while. Once the gold standard, it's been losing ground to flashier, tech-savvy rivals like Noom, MyFitnessPal, and a wave of telehealth startups pushing the latest miracle meds. But instead of fighting the shift, WW leaned in. It bought Sequence, a GLP-1 prescription platform, and started blending its old-school accountability model with medical support. Smart move, but an expensive one. Revenues fell, debt climbed, and the stock tanked. This bankruptcy reset? It might be the company's best shot at surviving the wellness wars. With over a billion in debt erased, the brand can finally focus on fixing what matters: modernizing the product, rebuilding trust, and reaching people in a crowded, noisy market. The trick will be walking the line between old and new. Between nostalgic snack bars and doctor-prescribed injections. But if WW gets it right, it won't just be a comeback. It'll be a transformation. And for the millions who once counted points and tracked progress, it might even feel like coming home. Related: Stanley cup maker sparks criticism over controversial partnership The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
4 days ago
- Business
- Miami Herald
In U.S. opioid crisis, states say yes to $7B Purdue Pharma settlement
June 16 (UPI) -- All 50 states, the District of Columbia and four other U.S. territories signed off on a multi-billion dollar settlement proposal with OxyContin maker Purdue Pharma in litigation over Purdue's alleged role in fueling America's opioid addiction crisis. In March, Purdue Pharma attorneys filed the proposed $7.4 billion settlement deal in a federal bankruptcy court over Purdue's assumed role in improper marketing practices after private negotiations with state attorneys general and other stakeholders in its bid to finalize the years-long lawsuit. It takes the place of a prior settlement proposal the U.S Supreme Court overturned last year in a 5-4 ruling in June. If finalized by all relevant parties, payouts would be issued over the next several years contingent on the approval by a U.S. bankruptcy court. Purdue first introduced its oxycodone spinoff into the U.S. market in the 1990s, but in 2019 filed for Chapter 11 bankruptcy protections after Perdue was later recipient to thousands of lawsuits over OxyContin. State law enforcement officers in California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia lead settlement talks in what is now thought to be America's largest lawsuit of its caliber involving the opioid addiction epidemic. Purdue under the ownership of the Sackler family invented, manufactured and marketed its opioid products for decades, which local officials say directly exasperated addiction and droves of overdose-related deaths. The settlement ends Sackler family control of Purdue Pharma, bars their ability to sell opioids in the United States with the Sacklers expected to pay $6.5 billion. Purdue Pharma, to be overseen by a monitor, must shell out nearly $900 million in its first payment, followed by $500 million a year later then again after two years, and $400 million after three years. In a statement, Perdue said Monday's revelation of "unanimous support" for the settlement among states and territories was a "critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis and deliver opioid use disorder and overdose rescue medicines that will save American lives." It will infuse more than $50 billion by corporate America over the next 15 years in hard-hit small towns where addiction flourished in order to support programming for opioid addiction treatment, prevention and recovery. "We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved," Purdue officials added. On Monday, Pennsylvania's attorney general noted how the state's local communities and its families "suffered" in what he described as an "unprecedented addiction crisis" in which Purdue and its Sacklers "reaped the mammoth profits from their products." "This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment and recovery programs across the Commonwealth," Sunday, a Republican, wrote in a statement. Meanwhile, local governments will be asked to join states in approving the settlement as part of legal process. A court hearing is schedule for Wednesday on the matter. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
4 days ago
- Business
- UPI
In U.S. opioid crisis, states say yes to $7B Purdue Pharma settlement
June 16 (UPI) -- All 50 states, the District of Columbia and four other U.S. territories signed off on a multi-billion dollar settlement proposal with OxyContin maker Purdue Pharma in litigation over Purdue's alleged role in fueling America's opioid addiction crisis. In March, Purdue Pharma attorneys filed the proposed $7.4 billion settlement deal in a federal bankruptcy court over Purdue's assumed role in improper marketing practices after private negotiations with state attorneys general and other stakeholders in its bid to finalize the years-long lawsuit. It takes the place of a prior settlement proposal the U.S Supreme Court overturned last year in a 5-4 ruling in June. If finalized by all relevant parties, payouts would be issued over the next several years contingent on the approval by a U.S. bankruptcy court. Purdue first introduced its oxycodone spinoff into the U.S. market in the 1990s, but in 2019 filed for Chapter 11 bankruptcy protections after Perdue was later recipient to thousands of lawsuits over OxyContin. State law enforcement officers in California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia lead settlement talks in what is now thought to be America's largest lawsuit of its caliber involving the opioid addiction epidemic. Purdue under the ownership of the Sackler family invented, manufactured and marketed its opioid products for decades, which local officials say directly exasperated addiction and droves of overdose-related deaths. The settlement ends Sackler family control of Purdue Pharma, bars their ability to sell opioids in the United States with the Sacklers expected to pay $6.5 billion. Purdue Pharma, to be overseen by a monitor, must shell out nearly $900 million in its first payment, followed by $500 million a year later then again after two years, and $400 million after three years. In a statement, Perdue said Monday's revelation of "unanimous support" for the settlement among states and territories was a "critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis and deliver opioid use disorder and overdose rescue medicines that will save American lives." It will infuse more than $50 billion by corporate America over the next 15 years in hard-hit small towns where addiction flourished in order to support programming for opioid addiction treatment, prevention and recovery. "We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved," Purdue officials added. On Monday, Pennsylvania's attorney general noted how the state's local communities and its families "suffered" in what he described as an "unprecedented addiction crisis" in which Purdue and its Sacklers "reaped the mammoth profits from their products." "This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment and recovery programs across the Commonwealth," Sunday, a Republican, wrote in a statement. Meanwhile, local governments will be asked to join states in approving the settlement as part of legal process. A court hearing is schedule for Wednesday on the matter.
Yahoo
5 days ago
- Business
- Yahoo
States agree to $7.4 billion settlement with Purdue Pharma in opioid litigation
All 50 states as well as Washington, D.C., and four U.S. territories have agreed to sign a $7.4 billion settlement with the company and once-prominent family behind OxyContin, officials announced Monday. The settlement resolves pending litigation against Purdue Pharma, which, under the leadership of the Sackler families, invented, manufactured and aggressively marketed opioid products for decades, according to the lawsuits. States and cities across the country said it fueled waves of addiction and overdose deaths. The attorneys general in 55 states and territories have signed on to the historic settlement, which they said will end the Sacklers' ownership of Purdue and bar them from making, selling or marketing opioids in the U.S. MORE: Purdue Pharma, Sackler families boost contribution in opioid settlement to $7.4 billion California, Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Oregon, Pennsylvania, Tennessee, Texas, Vermont, Virginia and West Virginia led the team that negotiated the settlement, which marks the largest of its kind involving the opioid crisis, officials said. "As Pennsylvania families and communities suffered during an unprecedented addiction crisis, Purdue and the Sacklers reaped the mammoth profits from their products," Pennsylvania Attorney General Dave Sunday said in a statement. "This monumental settlement achieves the top priority of getting as much money as quickly as possible to prevention, treatment, and recovery programs across the Commonwealth. My office will continue engagement with municipal leaders to ensure millions of dollars reach every corner of the state." Purdue introduced OxyContin, a brand name of oxycodone, in the 1990s and filed for Chapter 11 bankruptcy in 2019 after the company was sued thousands of times. The U.S. Supreme Court overturned a prior settlement in June 2024 that would have awarded $6 billion to state and local governments. The Sacklers and Purdue subsequently boosted their settlement contribution to $7.4 billion. "Today's announcement of unanimous support among the states and territories is a critical milestone towards confirming a Plan of Reorganization that will provide billions of dollars to compensate victims, abate the opioid crisis, and deliver opioid use disorder and overdose rescue medicines that will save American lives," Purdue said in a statement on Monday. "We appreciate the extraordinarily hard work of the state attorneys general and our other creditors in getting us to this point, and we look forward to soliciting creditor votes on the Plan after the disclosure statement is approved." The $7.4 billion will support opioid addiction treatment, prevention and recovery programs over the next 15 years. A significant amount of the funds will be distributed in the first three years, with the Sacklers paying $1.5 billion and Purdue paying approximately $900 million in the first payment, followed by $500 million after one year, an additional $500 million after two years, and $400 million after three years. MORE: Supreme Court blocks Purdue Pharma opioid settlement that shields Sackler family of liability 'There will never be enough justice, accountability or money to restore the families whose lives have been wrecked or to right the terrible consequences of the Sackler family's craven misconduct," Connecticut Attorney General William Tong said in a statement on Monday. "What we announce today is both momentous and insufficient, the culmination of years of tumultuous negotiations and legal battles all the way up to the U.S. Supreme Court." Now that the state sign-on period has ended, local governments across the country will be asked to join the settlement, contingent on bankruptcy court approval. A hearing on that matter is scheduled on Wednesday. A board of trustees selected by participating states in consultation with other creditors will determine the future of Purdue, which will continue to be overseen by a monitor and will be prevented from lobbying or marketing opioids. ABC News' Aaron Katersky contributed to this report. States agree to $7.4 billion settlement with Purdue Pharma in opioid litigation originally appeared on
Yahoo
17-04-2025
- Business
- Yahoo
Mitel Receives Court Approval of its Restructuring Plan, Clearing the Path to Capitalize on the Hybrid Market Opportunity
Company is expected to emerge from the restructuring process within the current calendar quarter with significantly reduced debt, improved capital structure, and renewed strategic focus on hybrid communications SUNNYVALE, Calif., April 17, 2025--(BUSINESS WIRE)--Mitel Networks Corporation, (together with certain affiliates, "Mitel" or "the Company"), a global leader in business communications, today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the "Court") confirmed the Company's prepackaged Plan of Reorganization (the "Plan"). Completion of the Company's restructuring process is expected within the current calendar quarter, resulting in significantly less debt, and a stronger capital structure that will support future growth. In March, Mitel announced its Plan to proactively recapitalize the company's debt and right-size its capital structure as part of a broader strategy to strengthen its leadership position in unified communications. The Plan was designed to position the Company to address the growing market demand for hybrid communications solutions and ensure continued support for Mitel's more than 70 million users across over 100 countries. As part of the normal course of business during the process, Mitel has continued to execute against its strategy, capitalizing on the hybrid communications market opportunity, building on its strong portfolio momentum, and driving business optimization to support sustained business momentum. "Approval of our Plan is a major milestone as we near the conclusion of our financial restructuring. Over the past several months, we have worked diligently to strengthen Mitel's financial foundation, and we are proud to have done so with the strong support of our employees, partners, customers, and lenders," said Tarun Loomba, Chief Executive Officer of Mitel. "With a more efficient capital structure in place, we're well-positioned to accelerate growth and sharpen our focus on delivering flexible, secure, and mission-critical communications solutions. We look forward to completing this process in the near term and to emerging as an even stronger vendor, employer, and business partner—continuing our leadership in hybrid communications for years to come." Under the terms of the Plan, Mitel will eliminate approximately $1.15 billion in debt and reduce its annual cash interest expense by approximately $135 million. The Company will also gain access to $64.5 million of exit financing upon emergence to support its go-forward operations. Pursuant to the Court's order approving payments to vendors in the ordinary course of business, the Company has been honoring its obligations to vendors, who will be paid in full for all claims under the Plan, and Mitel is continuing to deliver for its customers and partners throughout the process and into the future. The Company will complete its financial restructuring and emerge from the Court-supervised process after the transactions contemplated by the Plan are consummated and certain customary regulatory approvals are obtained. Additional resources about Mitel's financial restructuring can be accessed by visiting the Company's restructuring website at Court filing and other documents related to the Chapter 11 process are available at or by calling (855) 704-1401 (U.S. and Canada) or (949) 570-9105 (International). Mitel is advised in this process by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal advisor, FTI Consulting, Inc. as financial advisor, and PJT Partners LP as investment banker. The Ad Hoc Group of senior lenders is advised by Davis Polk & Wardwell LLP as legal advisor and Perella Weinberg Partners LP as investment banker. About Mitel Mitel is a global leader in business communications, providing businesses with advanced communication, collaboration, and contact center solutions. With more than 70 million users across over 100 countries, Mitel empowers organizations to connect, communicate, and collaborate seamlessly, with the flexibility and choice they need to thrive, both now and for the future. Through proven experience and innovative solutions, Mitel delivers communications without compromise. For more information, go to and follow us on LinkedIn and X @Mitel. Mitel is the registered trademark of Mitel Networks Corporation. All other trademarks are the property of their respective owners. View source version on Contacts Media Contact: pr@ Rachel Chesley / Diana SangiorgioMitelCommunications@ Sign in to access your portfolio
