Rowlett opts to accept Purdue Pharma 13th amended Chapter 11 plan; city manager authorized to submit ballot

The Rowlett City Council on Aug. 5 adopted a resolution authorizing the city manager to submit an electronic ballot accepting the thirteenth amended joint Chapter 11 plan of reorganization for Purdue Pharma LP and affiliated debtors. The council’s action was limited to authorizing submission of the city’s opt‑in ballot; the vote was unanimous, 6–0.

Background: The bankruptcy plan would liquidate Purdue Pharma’s assets and transfer them to a reorganized entity focused on developing and distributing opioid-addiction treatment and overdose-reversal medications at no profit. The nationwide reorganization and settlement process includes a bankruptcy-distribution stream that could provide funds to eligible local governments and public entities. The total settlement pool referenced in the staff materials is expected to exceed $7.4 billion; the city’s share will depend on eligible claims and the number of claimants participating in the reorganization.

Use restrictions: Settlement proceeds received under the plan are generally to be used for opioid-abatement, treatment, prevention and related services consistent with settlement terms. Staff said the city will receive any potential distributions in accordance with the bankruptcy plan and applicable requirements.

Vote and next steps: Councilmember Britton moved to authorize the city manager to execute and submit the ballot; Councilmember Reeves seconded and the motion passed 6–0. Staff will submit the ballot as the city’s formal participation in the bankruptcy plan and follow bankruptcy-administration steps for any future distributions.

Why it matters: Opting in preserves the city’s ability to receive a portion of national bankruptcy distributions earmarked for opioid response, treatment and remediation; precise amounts and allowable uses will be determined through the bankruptcy administration and settlement process.