Hit By Opioid Lawsuits Mallinckrodt Files For Second Bankruptcy In Just Three Years

Mallinckrodt Plc MNK has taken the next steps to implement the comprehensive financial restructuring plan.

The company and some of its subsidiaries have filed for a second bankruptcy in three years in the U.S., with the newest restructuring plan set to reduce its debt by about $1.9 billion.

The company expects to complete the court-supervised process in the fourth quarter of 2023.

The RSA also provides for a final, one-time payment of $250 million, among other considerations. 

In addition to the $450 million the company previously paid, this payment is intended to support the Trust's mission to address the U.S. opioid crisis and fund addiction treatment.

The 156-year-old company filed for Chapter 11 in Delaware on Monday, listing assets and liabilities of between $1 billion-$10 billion each. 

The company had earlier disclosed plans to file for bankruptcy again.

The company filed for Chapter 11 in October 2020, grappling with the legal complexities arising from its perceived roles in the opioid crisis.

The firm said it expects to complete the court-supervised process in the fourth quarter and is continuing to operate normally. Mallinckrodt intends to pay vendors and suppliers in full in the ordinary course, including for any pre-petition amounts owed at the time of the Chapter 11 filing.

Price Action: MNK shares are up 3.03% at $0..5 on the last check Monday.