(Bloomberg) -- Endo International Plc, the latest drugmaker pushed to the brink by opioid lawsuits, said it skipped a $38 million interest payment as it looks at options including a potential bankruptcy filing.

The move, which affects the company’s unsecured bonds, means the company sided with senior creditors, who have argued that skipping the bond payment and reorganizing in bankruptcy is better for the company. Endo has 30 days to hand over the missing cash before it becomes a formal default. The company chose to skip the payment while it keeps talking to creditors about ways to ease its debt load, Endo said in a regulatory filing.

The company has been discussing its options with creditor groups that have conflicting views over its best path for dealing with lawsuits over its role in America’s opioid epidemic, a mounting debt load and a dimmed outlook for its bestselling drug.  

The company’s senior lenders favor bankruptcy and wanted the company to skip upcoming interest payments to preserve cash, according to people with knowledge of the talks. Endo’s lower-ranking creditors are pressing options that would restrucuture its debts outside of court.

Before Endo skipped the payment, Bloomberg Intelligence credit analyst Mike Holland said the company was probably looking hard at taking such a step, because Endo has vastly reduced earnings expectations following competition for its top drug, Vasostrict.   

“To the dismay of vocal junior bondholders, it appears likely secured lenders and secured bondholders will be in position to drive a possible restructuring process,” Holland said earlier this week.

Representatives of Endo did not return calls and emails seeking comment.

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