Mallinckrodt Plc has for the second time reached an agreement to further delay a $200 million opioid settlement payment that was due earlier this month as the company continues to evaluate its options for addressing its debt load.
(Bloomberg) — Mallinckrodt Plc has for the second time reached an agreement to further delay a $200 million opioid settlement payment that was due earlier this month as the company continues to evaluate its options for addressing its debt load.
The drugmaker got a second extension to June 30 from representatives of the opioid trust administering settlement proceeds, according to a Friday regulatory filing. The payment was originally due June 16 but the company has postponed the obligation while it weighs its options, including potentially filing Chapter 11 for a second time.
The St. Louis, Missouri-based firm agreed to a $1.7 billion opioid settlement as part of its exit from bankruptcy last June, in which the company made an initial $450 million payment. Since then, its sales have missed projections, tipping it back into financial distress.Â
Mallinckrodt had been negotiating with lenders about its options ahead of the payment, with some urging the company to skip or delay the payment as it looks to renegotiate the settlement. Earlier this month, the company skipped interest payments on two of its bonds while considering.
–With assistance from Ilya Banares.
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