Mallinckrodt’s stock fell by 40% Monday after the drugmaker said it is in talks with creditors about options including a second bankruptcy filing to fix its balance sheet and address a $200 million payment due this month under a previous chapter 11 restructuring, WSJ Pro Bankruptcy reported. The Wall Street Journal reported on Friday that Mallinckrodt has engaged with at least one creditor group to discuss restructuring options that could include another chapter 11 filing to deal with the coming settlement payment related to past sales of opioids. The Dublin-based company confirmed in a securities filing Monday that it has received offers from various creditor groups for restructuring proposals to be implemented both out-of-court and through chapter 11. The company said that its board is “actively evaluating this situation and considering options, including transactions that have been proposed by the holders and other company stakeholders.” Mallinckrodt’s stock was trading at $1.47 midday Monday, down 40% from Friday’s close.
