Mallinckrodt Plc failed to line up funding for a loan deal designed to ease its debt load and help settle massive legal claims tied to its alleged role in the nation’s opioid crisis, Bloomberg Law reported. Lenders chose not to participate in a new term loan, and Mallinckrodt doesn’t expect that its existing credit agreement will be amended, the company said in a regulatory filing yesterday. Mallinckrodt is still looking to engage in discussions with debt holders about “refinancing alternatives.” The collapse casts doubt on Mallinckrodt’s plan to restructure the generic drug part of its business in bankruptcy. The goal was to keep the rest of the company operating normally by easing its debt load, and enable Mallinckrodt to handle costs of the opioid crisis. State and local lawsuits could cost more than $1.6 billion. It’s also facing about $650 million of rebates to the government tied to its flagship Acthar gel, which is used to treat multiple sclerosis. Mallinckrodt is disputing the rebates.
