At least three major companies have either filed for Chapter 11 Bankruptcy protection or defaulted on loans during the week of October 12 – October 16, 2020. These filings and defaults caused credit issuers to lower ratings for two of the three companies.
Sources: S&P, LABJ
Mallinckrodt PLC. is a developer and manufacturer of specialty pharmaceutical products. The company mainly specializes in pain management medications. Mallinckrodt sells its products to various retail drug store chains worldwide. Mallinckrodt announced its voluntary Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware. The company hopes the restructuring will resolve its outstanding liabilities. Consequently, S&P lowered the company’s credit rating to D.