Good day. Purdue Pharma and its Sackler family owners aren't done with litigation over the company's bankruptcy plan, which is being appealed. A senior-care facility owner has its bankruptcy case financed by a bondholder rather than an outside lender offering more. And cloud company GTT Communications reached a prepackaged bankruptcy deal.

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Top News

Holdout states vow to fight Purdue's Sacklers. Attorneys general who fought the chapter 11 reorganization plan of Purdue Pharma LP signalled they aren't giving up, potentially forcing an influential federal appeals court to consider the scope of bankruptcy judges' power to end lawsuits. More states that opposed the bankruptcy plan could also appeal, as could the Justice Department's bankruptcy unit.

Bondholder will finance senior-care bankruptcy. Bankrupt senior-care facility owner Regional Housing & Community Services Corp. has accepted $600,000 in short-term financing from a bondholder that beat back an outside lender's $5 million offer.

GTT Communications will file bankruptcy. Cloud-networking provider GTT Communications Inc. said it plans to file a pre-packaged bankruptcy after it closes the sale of its infrastructure division in the coming weeks.

Bankruptcy

Seadrill won approval to poll creditors. The judge overseeing oil-rig operator Seadrill Ltd.'s bankruptcy case advanced the company's proposed debt restructuring to a vote. Judge David Jones of the U.S. Bankrupty Court in Houston approved the disclosures describing Seadrill's chapter 11 plan, which is supported by lenders holding most of its secured debt.

Judge Jones approved the disclosure statement after Seadrill reached an interim resolution with plan opponent Strategic Value Partners LLC. The agreement delayed consideration of SVP's objections to a proposed $300 million exit loan.

The lenders backstopping that facility are getting a 16.75% equity stake for their trouble. Most of the remaining stock in Seadrill would go to lenders in exchange for nearly $5 billion in debt forgiveness. -- Andrew Scurria

Centerra Gold's $10 million bankruptcy loan. Centerra Gold Inc. committed up to $10 million in funding for its bankrupt Kyrgyzstan gold-mining operations to go after the Central Asian country. Centerra's interests in the Kumtor gold mine in Kyrgyzstan filed for U.S. bankruptcy protection in June after government authorities in the former Soviet republic took control from the company.

On Wednesday, the Kumtor units applied for permission in the U.S. Bankruptcy Court in New York on Wednesday to borrow from their Canadian parent. The Kumtor units said in a court filing they "do not currently control any of their physical assets or the vast majority of their cash, " apart from $850,000 in unencumbered cash across five bank accounts in the U.S. and Canada.

The proposed funding, if approved, would cover the costs of the bankruptcy, which is crucial to defending the Kumtor units' interests, according to the filing. Kyrgyzstan has said it took control of the mine over allegations that Kumtor failed to follow local environmental laws. Centerra has said Kyrgyzstan's complaints are spurious, created as pretexts to expropriate the company's investment amid rising gold prices. -- Andrew Scurria

Distress

Elizabeth Holmes's jury selected. Five women and seven men have been selected to serve as jurors for the monthslong trial of Ms. Holmes, after days of vetting to determine their impartiality and availability to weigh the fate of the Theranos Inc. founder charged with criminal fraud.

"How do you unread something? How do you unlisten to something? How do you unring the bell?"

-- U.S. District Judge Edward Davila, who asked jurors about their prior media exposure to stories about Theranos and Ms. Holmes

In Other News

A tide of failing energy companies has government regulators racing to address the nation's stockpile of abandoned, methane-leaking oil wells as environmental liabilities come to a head in oil and gas bankruptcy proceedings. (Bloomberg)

Fluctuations in PG&E Corp.'s stock price have left the fund established to pay wildfire victims more than $2 billion short, the man overseeing the payouts said Wednesday. (Fresno Bee)

(END) Dow Jones Newswires

09-03-21 0845ET