Mallinckrodt evaluating capital needs, extends $200M opioid payment

Mallinckrodt disclosed that its board is actively evaluating the company’s capital needs in light of its obligations under its opioid settlement and its long-term debt, and is considering options, including transactions that have been proposed by holders of various series of the company’s indebtedness and other stakeholders, as well as the viewpoints of various parties in interest. In connection with these ongoing discussions, on June 15, Mallinckrodt, certain subsidiaries of the company and the Opioid Master Disbursement Trust II entered into an amendment which extends to June 23, from June 16, the date on which a $200M payment is required to be made to the Trust. Mallinckrodt said it continues to analyze its situation and engage with various stakeholders, including representatives of the Trust. “There can be no assurance of the outcome of this process, including whether or not the Company may make a filing in the near term or later under the U.S. Bankruptcy Code or analogous foreign bankruptcy or insolvency laws,” the company added.