DJ Hedge Funds Devise Plan To Cut Off $1B Meant For Opioid Victims; Hedge Funds Including Silver Point In Talks With Mallinckrodt To Pull Out Of $1.7B Opioid Settlement; Hedge Funds Seek To Become Mallinckrodt's Owners After New Chapter 11 Filing
Portfolio Pulse from Benzinga Newsdesk
Hedge funds, including Silver Point, are in talks with Mallinckrodt to withdraw from a $1.7 billion opioid settlement. The hedge funds are devising a plan to cut off $1 billion meant for opioid victims and seek to become Mallinckrodt's owners after a new Chapter 11 filing.
July 26, 2023 | 2:56 pm
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Mallinckrodt's $1.7 billion opioid settlement is at risk as hedge funds, including Silver Point, consider withdrawing. This could lead to a cut-off of $1 billion meant for opioid victims and the hedge funds becoming the new owners of Mallinckrodt after a new Chapter 11 filing.
The potential withdrawal from the opioid settlement by hedge funds could lead to a significant financial and reputational blow for Mallinckrodt. The cut-off of $1 billion meant for opioid victims could lead to legal complications and public backlash. Furthermore, the hedge funds' plan to become the new owners of Mallinckrodt after a new Chapter 11 filing could lead to changes in the company's management and strategy, potentially affecting the company's stock price negatively in the short term.
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