MNK - Mallinckrodt delays $200M settlement payment again as it mulls bankruptcy

2023-07-06 17:52:53 ET

Mallinckrodt has delayed a planned $200M payment to an opioid victim's fund for a fourth time as the company mulls declaring bankruptcy for the second time this decade.

The drugmaker said in an SEC filing that it has moved the date of the payment  to the Opioid Master Disbursement Trust II to July 14 from July 7. The payment was originally due on June 16.

The payments are part of a $1.7B settlement relating to the company's alleged role in the national opioid crisis. Mallinckrodt paid $450M to the settlement fund when it emerged from bankruptcy last year. The company declared bankruptcy in 2020 amid the filing of thousands of lawsuits related to its opioid drugs.

Ireland-based Mallinckrodt has reportedly been mulling a second bankruptcy. In Thursday's SEC filing, the company said that it was engaging with stakeholders but could not guarantee that it would not file for bankruptcy in the US or abroad.

More on Mallinkrodt:

• Opioid settlement fund delays Mallinckrodt $200M payment for second time
• Mallinckrodt soars 47% on deal to delay $200M opioid payment
• Mallinckrodt to consider filing for bankruptcy again - WSJ

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