County approves bankruptcy plan for OxyContin maker
ATHENS–Aug. 5, Henderson County Commissioners’ Court voted to accept the proposed bankruptcy plan for Purdue Pharma as well as the execution of the subdivision participation and release form.
Jan. 23, Texas Attorney General Ken Paxton announced that a bipartisan coalition of states and other parties reached a $7.4 billion settlement in principle with members of the Sackler family and their company Purdue Pharma for what an attorney general’s office release says was “their instrumental role in creating the opioid crisis.”
County Attorney Clint Davis said the county has received word from its attorneys about what he called the “ongoing opioid litigation, and one of the big players in that is Purdue Pharma,” which Davis said manufactured OxyContin, one of the drugs “that led to this epidemic,” according to the county attorney. The controversy surrounding the drug and ensuing litigation led to Pharma’s bankruptcy, Davis said. Stemming from all of that is the $7.4 billion settlement.
What faced the court, according to Davis, was whether to accept or reject the bankruptcy and settlement plan. Choosing to reject the plan would mean pursuing Pharma individually with a lawsuit, the county attorney stated. The county doesn’t know how much it would receive as one of “thousands, if not tens of thousands” of claimants, Davis remarked.
“The numbers sound really big until you start splitting that pie up,” Davis commented. The county attorney said the drug litigation is nearing its end and Pharma is one of the last holdouts, which is because “it was one of the larger ones.”
Part of the payout decision, according to Davis, is how much OxyContin was distributed in Henderson County.
Also, the court approved an order authorizing the county’s continuation of the Northeast Health Care Provider Participation District, along with Lamar and Hopkins counties. The district’s existence is now perpetual instead of renewable every two years because of a change to state law, Davis said.
The district helps with federal health care payments to hospitals, according to Precinct 4 Commissioner Mark Richardson. County Auditor Ann Marie Monk indicated the funding is substantial.
“It’s a good program, it is intended to draw down federal dollars and support the health care system,” said County Judge Wade McKinney.
The court also approved a rural fire protection contract agreement and authorized the county judge to execute the agreement with fire departments receiving county funds. Assistant County Attorney Kenneth Strawn said the contract allows the departments to maintain insurance coverage and helps them to comply with reporting requirements, for instance. The money from the rural fire protection contract is not just for volunteer departments, Strawn added. McKinney said the contract applies to 2025. The form related to the contract is due back from the departments Sept. 5.
Further, the court approved 2025 property tax collection contracts between Henderson County and the following taxing authorities: Athens, Brownsboro, Cross Roads, Eustace, Frankston, LaPoynor, Malakoff, Murchison and Trinidad ISDs, along with the cities of Athens, Brownsboro, Caney City, Chandler, Enchanted Oaks, Eustace, Frankston, Log Cabin, Malakoff, Payne Springs, Seven Points, Star Harbor, Tool and Trinidad, as well as Athens Municipal Water Authority, Henderson County Levee District No. 3, Lake View Management and Development District (Long Cove), Trinity Valley Community College, Emergency Services District (ESD) No. 1, ESD No. 2, ESD No. 3, ESD No. 4, ESD No. 5, ESD No. 6, ESD No. 7, ESD No. 8, ESD No. 10, ESD No. 11 and ESD No. 12.
In other business, the court:
• Approved a request from the Henderson County Tax Assessor-Collector to refund tax overpayments, issuing 12 checks totaling $166,591.38.
• Approved a contract agreement between Henderson County and the Henderson County Fire Chiefs’ Association, which Strawn said would provide a central liaison to communicate between the county and local departments, especially in relation to rules compliance.
• Approved a donation of waste concrete riprap from Tracy Holder to Henderson County Precinct 4, with the condition that the county pick it up, according to Richardson.
• Approved appointing JC Bushman as a new member of the ESD No.11 Board of Commissioners (which is affiliated with the Southside Volunteer Fire Department in Shady Oaks) for a term ending Dec. 31, replacing Tres Winn, whose resignation was accepted because he moved out of the district.
• Approved a right-of-way permit for Aqua Services to install a two-inch sewer main along and under County Road 1411 South, which is near Log Cabin in Precinct 1.
• Approved paying fiscal year 2025 bills of $619,194.66.
• After an executive session to discuss personnel matters involving the county fire marshal, reconvened into open session and took no action on the item.