Mallinckrodt emerges from its Chapter 11 and Companies’ Creditors Arrangement Act restructuring proceedings

On June 16, 2022, Mallinckrodt plc and its affiliates (“Mallinckrodt”) announced that it has successfully completed its reorganization process and emerged from proceedings under Chapter 11 of the US Bankruptcy Code. Mallinckrodt is moving forward as a diversified global specialty pharmaceutical company with a strengthened balance sheet and increased financial flexibility to invest in its business, execute its strategic initiatives, advance its pipeline and better meet the needs of patients.

In connection with its emergence, Mallinckrodt has, among other things:

• reached key settlements that resolve numerous lawsuits related to its opioid products and Acthar Gel^® product;
• reduced its total debt by approximately US$1.3 billion;
• issued US$650 million in aggregate principal amount of new first lien senior secured notes and entered into a US$200 million accounts receivable financing facility;
• reinstated US$495 million in aggregate principal amount of its existing first lien senior secured notes and issued US$1.76 billion in aggregate principal amount of new first lien senior secured term loans to the holders of its existing term loans in satisfaction thereof;
• issued US$323 million in aggregate principal amount of new second lien senior secured notes to the holders of its existing second lien senior secured notes in satisfaction thereof;
• issued US$375 million in aggregate principal amount of new second lien senior secured notes to the holders of certain of its existing unsecured senior notes in partial satisfaction thereof;
• significantly equitized its guaranteed unsecured notes; and
• emerged with more than US$250 million in cash and cash equivalents on hand.

Mallinckrodt is now the first company that has permanently resolved opioid litigation on a global scale, including any future claims that might be brought for periods prior to emergence. Mallinckrodt will continue operating its opioid business in a responsible manner, in compliance with an operating injunction agreed to with US state Attorneys General that has been in place since the commencement of the Chapter 11 process, and under the oversight of an independent monitor.

Mallinckrodt filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code on October 12, 2020, in addition to seeking recognition of the proceedings in Canada on October 16, 2020, under the Companies’ Creditors Arrangement Act ("CCAA"). Proceedings under the CCAA terminated on June 17, 2022, following Mallinckrodt’s emergence from the Chapter 11 proceedings.

Further information can be found on Mallinckrodt’s website and on the website of the CCAA Information Officer.

Mallinckrodt is a leading global specialty biopharmaceutical business that develops, manufactures, markets and distributes specialty pharmaceutical products and therapies.