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Drugmaker Mallinckrodt May File for Bankruptcy Again

Submitted by jhartgen@abi.org on

Pharmaceutical company Mallinckrodt Plc is considering options including filing for bankruptcy again as a $200 million opioid settlement payment is due within weeks, the Wall Street Journal reported on Friday, according to Reuters. The drugmaker is required to make the payment to an opioid-victims compensation trust by mid-June as part of its chapter 11 exit plan, the newspaper said. The company filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from chapter 11 last year. Shares of Mallinckrodt closed 5.4% lower at $2.45 apiece on Friday. The stock has plunged 68% so far this year.