Opioid Manufacturer Mallinckrodt Files for Chapter 11 amid Litigations

On October 12, Mallinckrodt plc filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. 

The Ireland-based pharmaceutical company intends to use its bankruptcy proceedings to implement a restructuring support agreement. The company’s agreement pertains to an amended proposed opioid claims settlement, other legal liabilities, and the restructuring of its debt.

One key term of the corporation’s RSA is the payments of $1.6 billion to opioid claimants over several years. Another is the reduction of its total debt by about $1.3 billion.

Additionally, the company will pay $260 million over seven years to resolve disputes relating to prescription medicine Acthar Gel. This payment will represent 100% rebates to the Centers for Medicare and Medicaid Serv...

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