Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Mallinckrodt Debt Restructuring Plan Examinership Overview:
- Who: Mallinckrodt is preparing for an examinership in the High Court.
- Why: The examinership comes following Mallinckrodt’s debt restructuring plan being approved in a United States court.
- Where: The examinership will be in the High Court in Belfast.
Mallinckrodt is preparing for an examinership in the High Court as the Dublin-based drugmaker seeks to finalise a debt restructuring plan it developed in the United States, where the company is run.
The company listed $5.3 billion (€4.63 billion) in long-term debts when it applied for bankruptcy in Delaware following a wave of claims that it had marketed opioids deceptively, reports The Irish Times.
Mallinckrodt ultimately agreed to a $1.7 billion settlement with 47 different states and territories to resolve the claims, in a case that was fleshed out in a US court.
“We are pleased to have achieved this significant milestone in the Company’s reorganization. We appreciate the broad consensus reached with key stakeholder groups for the Plan and their confidence in Mallinckrodt and our path forward,” Mark Trudeau, president and chief executive officer of Mallinckrodt said, in a statement. “We have made important progress and are now turning to the final phases in a reorganization process designed to reduce debt, address litigation claims and position the Company for long-term success.”
The company will also pay $260 million to the US government in order to exonerate itself from claims it failed to provide adequate rebates on its Acthar Gel hormone treatments, reports The Irish Times.
Restructuring Plan Will Decrease Company’s Debt To $1.3 Billion
The debt restructuring plan — which has been confirmed by a Delaware bankruptcy court — will decrease Mallinckrodt’s debt to $1.3 billion, the company said.
“In the coming days, the Directors of Mallinckrodt intend to make certain filings to commence Examinership Proceedings in Ireland, which are required to implement certain Irish law aspects of the reorganisation and allow for emergence,” Mallinckrodt said.
The process, which should allow Mallinckrodt to get out from under a Chapter 11 bankruptcy by June, will take around 100 days to complete, the company said.
Mallinckrodt expects to formally emerge from Chapter 11 in the first half of 2022, following the completion of the Examinership Proceedings and once all conditions of the Plan are effective. Until that time, the Company remains under the U.S. Bankruptcy Court’s jurisdiction,” Mallinckrodt said.
Mallinckrodt’s examinership case will be the second largest ever in Irish corporate history, reports The Irish Times.
Under the terms of the bankruptcy plan, Mallinckrodt’s shares are set to be cancelled, while unsecured debt holders will have their debt swapped for ownership in the reorganised company.
Mallinckrodt faced both support and opposition during its Chapter 11 bankruptcy plan, with some shareholders claiming it suppressed their rights, reports The Irish Times.
In 2020, the former CEO of Cambridge Analytica was banned from managing organisations for a total of seven years following a massive Facebook data breach scandal which ultimately forced the company to declare for bankruptcy.
Along with Cambridge Analytica, a number of other related companies also filed for bankruptcy and were forced to close in 2018 following the scandal.
Are you a Mallinckrodt shareholder who will be affected by the company’s debt restructuring plan? Let us know in the comments!
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Major Airlines Ryanair, easyJet, British Airways, Others Lose Case Against Government for ‘Shambolic’ COVID-19 Travel Regulations
- UK Govt. Hit With Class Action for Alleged Human Rights Abuses Stemming from Northern Ireland Protocol
- Stonegate Pub Co £845M Lawsuit Alleges Paltry COVID Business Interruption Insurance Claim Payouts
- Hiscox, 400 Companies Agree to COVID-19 Business Interruption Insurance Settlement
One thought on Dublin-Based Drugmaker Mallinckrodt Readies for High Court Examinership Following Debt Restructuring Approval
Buenos días,
Pues si, accionista de Mallinckrodt y he perdido 531 acciones.
Compradas en el año 2020 y sorpresa para mi con el Deslístamiento el día 29 de junio de 2022, a 0 euros.