Purdue Pharma debtor looks to sell Coventry manufacturing facility

By Caroline Salls

Pittsburgh, Sept. 16 – Purdue Pharma, LP requested court approval to sell debtor Rhodes Technologies’ Coventry, R.I., manufacturing facility, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Noramco Coventry LLC has agreed to purchase the facility for up to $10 million, with $1 million to be paid at closing.

According to the motion, in connection with the development of an updated business plan finalized in April, the Purdue debtors decided to explore strategic alternatives for the Coventry facility and outsource the related supply needs.

If the purchase agreement is terminated under specified circumstances, Purdue would pay Noramco a $3 million break-up fee and reimburse up to $1.5 million of its sale-related expenses.

The agreement may be terminated if the court does not approve the sale by Oct. 5.

A hearing is scheduled for Sept. 30.

Purdue Pharma is a Stamford, Conn.-based drug manufacturer. It filed for Chapter 11 bankruptcy on Sept. 15, 2019 under case number 19-23649.

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