Mallinckrodt PLC said it may have to file for bankruptcy protection over liabilities tied to the opioid crisis while offering creditors the opportunity to swap their claims for new, discounted debt, the Wall Street Journal reported. The generic drugmaker said on Tuesday that despite its efforts to resolve hundreds of lawsuits over its alleged role in fueling opiate addiction, it may be “necessary or advisable” for it to restructure its debts in a bankruptcy proceeding. Mallinckrodt previously signalled that it was under financial pressure and was preparing for a potential bankruptcy, hiring restructuring experts and drawing down the remaining $95 million of availability on a revolving credit facility. On Tuesday, Mallinckrodt also offered to exchange some of its bonds for new, secured debt at discounts of between 85 cents and 42.5 cents on the dollar. If creditors fully participate, Mallinckrodt would reduce its debt by more than $800 million, according to a securities filing. Deerfield Partners LP signed a separate exchange offer with the company and agreed to swap $500 million in bonds for new debt, Mallinckrodt said.
