Mallinckrodt Plc struck a deal to delay a $200 million opioid settlement payment originally due Friday as it continues evaluating options to restructure its balance sheet, Bloomberg News reported. The company got an extension to June 23 from representatives of the opioid trust administering settlement proceeds, according to a Friday regulatory filing. Mallinckrodt said it is continuing to evaluate its capital needs given its obligations under the opioid settlement and its long-term debt. Mallinckrodt is negotiating a 30-day waiver with its secured lenders to avoid a default tied to skipping the settlement payment, said the people, who asked not to be identified because the negotiations are private. The company and some of its lenders are discussing a potential restructuring of its settlement obligations, they added. The company agreed to a $1.7 billion opioid settlement as part of its exit from bankruptcy last year. Since then, its sales have missed projects, tipping the company back into financial distress. The payment due Friday was scheduled to be its second after an initial $450 million contribution last year. Mallinckrodt had been negotiating with lenders about its options ahead of the payment, with some of them urging the company to skip or delay the payment as it looks to renegotiate the settlement. The company has said it’s considering options including a second chapter 11 filing to address its financial woes and “there can be no assurance of the outcome of this process.”
