Mallinckrodt announced it has voluntarily initiated Chapter 11 proceedings declaring itself bankrupt at the District of Delaware, according to Bloomberg Law. The company aims to modify its capital structure through the bankruptcy filing.
- Stockholders and non-guaranteed unsecured noteholders will not receive capital recovery.
- Proposed capital structure changes to cut debt by approximately $1.3 billion
- The company will use Chapter 11 process to ensure fair, efficiency, orderly and legally binding restructuring support agreement (RSA)
- All allowed First Lien Credit Agreement Claims, First Lien Note Claims and Second Lien Note Claims expected to be reinstated at existing rates and maturities
- Holders of allowed guaranteed unsecured note claims to receive $ 375 million pro rata share of new secured second lien notes due seven years and 100% new Mallinckrodt ordinary shares
- Holders of General Unsecured Claims and trade creditors to share in $150 million
- Mallinckrodt has reached an agreement in principle on amended proposed settlement to resold opioid-related claims for the company and its subsidiaries.
Mallinckrodt stock declined on bankruptcy filing announcement. MNK:NYSE is down 31.19%
