Mallinckrodt's Bankruptcy Plan Approved, Wiping Out Over $1B Meant for Opioid Overdose Crisis
Portfolio Pulse from Vandana Singh
Mallinckrodt plc (OTC: MNKTQ), a major manufacturer of prescription opioids, has received court approval for a bankruptcy plan that eliminates over $1 billion in payments intended for people with substance use disorders. The plan transfers control of the company to its lenders and cancels existing shares, with creditor groups receiving new shares in the restructured company. The company is also considering selling its generics business, which includes opioid production.
October 11, 2023 | 11:50 am
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Mallinckrodt's approved bankruptcy plan erases over $1 billion in payments and transfers control to lenders. Existing shares will be cancelled and creditor groups will receive new shares in the restructured company.
The approval of Mallinckrodt's bankruptcy plan is a significant event for the company. It eliminates a large financial obligation and changes the company's ownership structure, which will likely lead to a decrease in the value of existing shares. The potential sale of its generics business could also impact the company's future revenue and profitability.
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