Opioid maker Mallinckrodt Plc filed a plan of reorganization Tuesday that has the support of opioid litigation claimants, holders of 84% in principal amount of unsecured notes and an undisclosed portion of term loan holders, according to court filings, Bloomberg News reported. The plan provides for the company’s revolving credit facility to be paid in full in cash. First- and second-lien term lenders would either be repaid in cash or with new takeback term loans plus cash for accrued interest and other payments, depending on the allowance of each group’s make-whole claims at the time of confirmation. Unsecured noteholders would receive a pro rata share of the takeback second-lien notes and equity shares in the reorganized company. The disclosure statement stipulates that the ad hoc group of unsecured noteholders hasn’t yet approved the language allocating takeback loans to the first- and second-lien holders. Opioid litigation claims would be channeled into a trust set aside for their settlement and payment. The company has previously said it would total $1.6 billion in structured payments. Mallinckrodt was the third major opioid maker to go under after being swamped by lawsuits alleging it profited by fueling the U.S. opioid epidemic.
