US pharmaceutical company Mallinckrodt is heading for examinership here in as its efforts to agree a debt restructuring deal in the US have been agreed.
Mallinckrodt, which has been in Ireland for about 30 years, makes specialised medical devices and therapies.
It said in a statement that its reorganisation plan has been confirmed by the US Bankruptcy Court for the District of Delaware.
The company said this paves the way for it to begin the next stage in its reorganisation process, which plans to cut its debt by $1.3 billion.
It had filed for bankrupcy in the US as it faced lawsuits which had accused the company of deceptively marketeing opioids, including its Acthar gel product.
Mark Trudeau, President and Chief Executive Officer of Mallinckrodt, said the company was pleased to have achieved the "significant milestone" in the company's reorganisation.
"We appreciate the broad consensus reached with key stakeholder groups for the plan and their confidence in Mallinckrodt and our path forward," Mr Trudeau said.
"We have made important progress and are now turning to the final phases in a reorganisation process designed to reduce debt, address litigation claims and position the company for long-term success," he added.
The company said that implementing the plan and previously announced restructuring support agreement (RSA) will significantly improve its financial position and resolve numerous lawsuits the company was facing before the Chapter 11 proceedings by channeling opioid claims and many other general unsecured claims to various creditor trusts.
"Implementing the plan and RSA will also enable Mallinckrodt to move forward as a better capitalised company, with material historical litigation resolved, and a renewed focus on its strategic priorities of developing and commercialising therapies that improve health outcomes," it added.
It said it expects the Irish Examinership Proceedings to take approximately 100 days.
"Mallinckrodt expects to formally emerge from Chapter 11 in the first half of 2022, following the completion of the Examinership Proceedings and once all conditions of the plan are effective," it added.