Mallinckrodt secures broad consensus with key stakeholders on comprehensive Chapter 11 restructuring

Mallinckrodt plc announced that it has voluntarily initiated Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to modify its capital structure, including restructuring portions of its debt, and resolve several billion dollars of otherwise unmanageable potential legal liabilities. Mallinckrodt and all of its subsidiaries are continuing to operate and supply customers and patients with products as normal. The entities that filed Chapter 11 petitions include Mallinckrodt plc, substantially all of its U.S. subsidiaries, including its specialty generics-focused subsidiaries and specialty brands-related subsidiaries and certain of its international subsidiaries.The Company intends to use the Chapter 11 process to provide a fair, orderly, efficient and legally binding mechanism to implement a restructuring support agreement. The aim is to resolve the billions of dollars in opioid drug-related claims the company faces as well as a high-profile federal lawsuit over rebate payments owed to Medicaid.