Mallinckrodt (MNK) - Get Report, which makes opioids and other drugs, is reportedly close to a deal to hand majority ownership to its unsecured-bond holders as part of a bankruptcy filing.<\/p>\n
Shares of the U.K. biopharmaceutical company at last check were off 19% at 88 cents.<\/p>\n
The bonds would be traded for most of Mallinckrodts equity and some new debt, and the debt of higher-ranked lenders would be reinstated or replaced by new securities that fully cover their claims, Bloomberg reported, citing people with knowledge of the plan.<\/p>\n
The lenders and opioid claimants would be included in the agreement, the people said.Mallinckrodt did not immediately respond to a request for comment.<\/p>\n
Debtwire reported earlier on negotiations to give the bondholders equity and new debt. Most of the companys unsecured debt trades at about a quarter of its original value.<\/p>\n
Mallinckrodt would become the third major opioid producer to file for bankruptcy, Bloomberg noted.<\/p>\n
Companies have faced off against thousands of plaintiffs from states, cities and counties that blame drugmakers and distributors for the epidemic of overdose deaths.<\/p>\n
The Centers for Disease Control estimates thatevery day in the U.S.130 people die from an opioid-related drug overdose.<\/p>\n
Purdue Pharma, which entered Chapter 11 protection last year, has proposed a $10 billion settlement of existing claims. Insys Therapeutics filed under the bankruptcy laws earlier in 2019.<\/p>\n
Mallinckrodt hired restructuring advisers late last year, and management disclosed in February it was pursuing court protection.<\/p>\n
The plan at that time was to settle its opioid claims by putting a small part of the company into bankruptcy, but it failed to gain required support from lenders.<\/p>\n
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Mallinckrodt Is Said to Be Near Bankruptcy Deal - TheStreet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Mallinckrodt (MNK) - Get Report, which makes opioids and other drugs, is reportedly close to a deal to hand majority ownership to its unsecured-bond holders as part of a bankruptcy filing. Shares of the U.K Continue reading