: Mallinckrodt to file for prepackaged Chapter 11 bankruptcy and cut about $1.9 billion in debt


Mallinckrodt PLC MNK, +5.09% said Wednesday it has entered a Restructuring Support Agreement with most of its first and second lien debtholders and the Opioid Master Disbursement Trust II on the terms of a restructuring that will see it reduce its debt by about $1.9 billion. The agreement includes a final payment of $250 million to the Trust, on top of the $450 million already paid, to support its work on the opioid crisis and to fund addiction programs. The company will file for a prepackaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware in the coming days. “Due to the overwhelming support of its key stakeholders, the Company expects to complete the contemplated prepackaged Chapter 11 process in the fourth quarter of 2023,” the company said in a statement. It will continue to deliver therapies to patients, and to pay staff and vendors. All of the company’s outstanding ordinary shares are expected to be extinguished once the plan is consummated. The stock was halted premarket for the news.

This article was originally published by Marketwatch.com. Read the original article here.

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