In an exhilarating twist, specialty drug titan Mallinckrodt PLC unveiled an ambitious deal with its creditors this Wednesday.
This groundbreaking financial overhaul is aimed at erasing a staggering $1.9 billion of its debt, marking its bold return to Chapter 11—remarkably, the company’s second such venture in a mere span of three years.
Mallinckrodt Strikes Creditor Deal : Unwrapping the Deal
Underlining the pact’s terms, Mallinckrodt has affirmed that the restructuring support agreement would culminate in a hefty $250 million allocation to the Opioid Master Disbursement Trust II, a legacy from its initial bankruptcy episode.
This decisive move, they assert, settles the dues with the trust, adding up their contribution to a robust $450 million to date.
Mallinckrodt Strikes Creditor Deal : Charting the Future Course
Akin to a master chess player making their next strategic move, Mallinckrodt anticipates submitting a meticulously prepackaged plan of reorganization.
The chosen battleground? The esteemed courts of Delaware. The dossier further highlighted that the drugmaker has garnered the backing of an overwhelming majority of its principal creditors. The audacious strategy envisions shaving off $1.2 billion from its senior secured liabilities while wiping clean an additional $650 million of its second-lien debt.
