Mallinckrodt PLC (MNK, +5.09%) has recently reached a significant milestone by entering into a Restructuring Support Agreement with a majority of its first and second lien debtholders and the Opioid Master Disbursement Trust II. This agreement marks a crucial step towards the company’s plan to reduce its debt by approximately $1.9 billion.
Commitment to Addressing the Opioid Crisis
As part of this agreement, Mallinckrodt PLC has committed to providing financial support for addressing the ongoing opioid crisis and funding addiction programs. The company has already made a substantial payment of $450 million to the Trust, and an additional final payment of $250 million will be made, ensuring the continuation of crucial efforts in combatting this crisis.
Prepackaged Chapter 11 Bankruptcy Filing
To facilitate the debt restructuring process, Mallinckrodt PLC will file for a prepackaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware in the upcoming days. With the overwhelming support received from its key stakeholders, the company anticipates completing this process in the fourth quarter of 2023.
Ensuring Continued Operations
Throughout this restructuring phase, Mallinckrodt PLC remains committed to delivering therapies to patients and honoring its financial obligations to staff and vendors. The company assures that all necessary measures will be taken to ensure uninterrupted operations and ongoing support to those who rely on its products.
Ordinary Shares to be Extinguished
As part of the restructuring plan, all outstanding ordinary shares of Mallinckrodt PLC are expected to be extinguished upon the consummation of the plan. The company aims to achieve a more stable financial foundation that will enable it to better serve its stakeholders and work towards future growth.