Drugmaker Mallinckrodt has said the company and some of its units have filed for a second bankruptcy in 3 years in the U.S., with the newest restructuring plan set to reduce its debt by about $1.9 billion.
The Dublin-based company initiated Chapter 11 proceedings after reaching a debt reduction deal that would cut $1 billion from the amount it owes to victims of the opioid crisis.
The company is one of the largest manufacturers of opioids.
It also makes generic and branded drugs such as Acthar Gel, which is used to treat multiple sclerosis and infantile spasms.
Mallinckrodt, which had also filed for bankruptcy in 2020, was a defendant in more than 3,000 lawsuits alleging that it used deceptive and misleading marketing tactics to boost its sales of highly addictive opioid drugs.
After court approval, the company will have excess of $450 million of liquidity comprising cash, commitments received for $250 million in new financing from certain of its creditors, it said in a statement.
Mallinckrodt has listed both estimated assets and liabilities in the range of $1 billion to $10 billion, the drugmaker said in a court filing with the U.S. Bankruptcy Court for the District of Delaware.
The company expects to complete the court-supervised process in the fourth quarter of 2023 with support of its key stakeholders.
It has also said that in connection with the Chapter 11 filing, it intends to make certain filings to commence examinership proceedings in the courts here in Ireland, which are required to implement certain Irish law aspects of the financial restructuring and allow for emergence.
