Shares of Mallinckrodt PLC
MNK,
tumbled 22.0% in premarket trading Monday, after the drug maker disclosed that certain debt holders proposed another bankruptcy filing given the company’s financial position. The proposal comes as the company is required to make a $200 million payment on June 16, as part of its opioid settlement. The Wall Street Journal had reported earlier that the company was exploring a repeat bankruptcy. Mallinckrodt said there are also proposals from some debt holders that don’t involve a bankruptcy filing. “The Board is actively evaluating this situation and considering options, including transactions that have been proposed by the holders and other company stakeholders, as well as the viewpoints of the various parties in interest,” the company said in a statement. Mallinckrodt had filed for bankruptcy in October 2022, in part due to the $1.6 billion opioid settlement agreed in February of that year, and emerged from bankruptcy in June 2022. Mallinckrodt’s stock has plummeted 73.1% over the past three months through Friday, while the S&P 500
SPX,
has gained 5.9%.
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