MNK - Opioid settlement fund delays Mallinckrodt $200M payment for second time
2023-06-23 10:20:27 ET
Mallinckrodt ( NYSE: MNK ) said that the Opioid Master Disbursement Trust II has agreed to delay the company's $200M payment to June 30 from June 23.
The original due date of the payment was June 16. The parties had entered into a deferred payment agreement when Mallinckrodt emerged from bankruptcy protection on June 16, 2022, according to an SEC filing.
The payments are part of a $1.7B settlement over the company's alleged role in the national opioid crisis. The funds are to be used to help victims of the crisis. Mallinckrodt paid $450M to the settlement fund when it emerged from bankruptcy last year.
Earlier this month, the drugmaker said that it would not be making interesting payments on two bonds. The bonds have principal amounts of $650M and $375M.
Mallinckrodt has reportedly been mulling filing for bankruptcy again. The Wall Street Journal reported earlier this month that the company may try to negotiate payments to the opioid victims' trust in order to avoid filing for Chapter 11 .
More on Mallinkrodt:
- Mallinckrodt soars 47% on deal to delay $200M opioid payment
- Mallinckrodt down 35% on missed bond payments
- Mallinckrodt to consider filing for bankruptcy again - WSJ
- Mallinckrodt gains approval for NYSE American listing
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Opioid settlement fund delays Mallinckrodt $200M payment for second time