Mallinckrodt Plc said on Monday it was considering a second bankruptcy filing and other options after its lenders raised concerns over an upcoming $200 million payment related to opioid-related litigation.
The drugmaker emerged from bankruptcy last year after winning court approval for a reorganization plan that included a $1.7 billion settlement of the litigation.
The trust which was owed the $200 million by June 16 had sent Mallinckrodt a letter demanding timely payment and threatening action in the event of a default, the company said in a filing.
Its board was considering all options, with some lenders having proposed actions other than filing for bankruptcy, but there can be no assurance of the outcome of the process, Mallinckrodt said.
The company makes generic drugs, including opioids, and branded drugs such as Acthar Gel, which is used to treat multiple sclerosis and infantile spasms.
People are also reading…
on Friday that Mallinckrodt was considering a bankruptcy filing.
Updated at 6:37 a.m. Monday. Our earlier story, posted Saturday morning:
Pharmaceutical company Mallinckrodt Plc is considering options including filing for bankruptcy again as a $200 million opioid settlement payment is due within weeks, citing people familiar with the matter.
The drugmaker is required to make the payment to an opioid-victims compensation trust by mid-June as part of its Chapter 11 exit plan, the newspaper said.
Mallinckrodt did not immediately respond to a Reuters request for comment outside office hours.
The company filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from Chapter 11 last year.
Shares of Mallinckrodt closed 5.4% lower at $2.45 apiece on Friday. The stock has plunged 68% so far this year.
Mallinckrodt is headquartered in Staines-Upon-Thames in Britain, and has U.S. offices in Missouri and New Jersey. Mallinckrodt’s U.S. subsidiary, , and another generic drugmaker, Actavis Pharma, produced the vast amount of prescription opioids distributed throughout the country.
Mallinckrodt’s origin traces back to 1867 when three Mallinckrodt brothers founded a chemical concern in ºüÀêÊÓƵ that later became a major supplier of pharmaceuticals.
Beginning in the 1940s, the Mallinckrodt Chemical Works in downtown ºüÀêÊÓƵ processed uranium ore for the development of the first atomic bomb.