Continuing to Serve Customers and Deliver High-Quality
Therapies to Patients Without Interruption; Vendors and Suppliers
to be Paid in Full in the Ordinary Course
DUBLIN, Aug. 30,
2023 /PRNewswire/ -- Mallinckrodt plc (OTCMKTS:
MNKTQ) ("Mallinckrodt" or the
"Company"), a global specialty pharmaceutical company, today
announced that it has received approvals from the U.S. Bankruptcy
Court for the District of Delaware
for its "First Day" motions related to the Company's voluntary
Chapter 11 petitions filed on August 28,
2023.
As expected, the Court granted Mallinckrodt approval to access $150 million of the $250
million of commitments for new financing it received from
certain of its creditors, as well as new borrowing availability
from lenders under its asset-based loans. The approvals granted by
the Court also enable the Company to continue paying employee
wages, salaries and benefits without interruption and to continue
paying vendors and suppliers in the ordinary course, including for
any pre-petition amounts owed at the time of filing.
Siggi Olafsson, President and
Chief Executive Officer of Mallinckrodt, said, "We are pleased to have
received prompt approval of these First Day motions, which will
enable us to continue operating normally, supporting patients with
high-quality therapies, serving customers and working with our
business partners. I would also like to thank our customers,
vendors, suppliers and other stakeholders for their continued
partnership as well as the entire Mallinckrodt team for their continued
commitment."
Mr. Olafsson continued, "With the overwhelming support of our
key stakeholders, we expect Mallinckrodt will emerge from this process on an
expedited basis with additional financial flexibility and
well-positioned to advance our business priorities and deliver
high-quality therapies to our customers and patients."
As previously announced, Mallinckrodt entered into a Restructuring Support
Agreement with holders of approximately 90% of each of the
Company's first and second lien debt and the Opioid Master
Disbursement Trust II on the terms of a comprehensive financial
restructuring plan. Implementing the financial restructuring
contemplated by the RSA will reduce the Company's total funded debt
by approximately $1.9 billion,
increase free cash flow generation, extend maturity runway and
better position the business for long-term success.
Additional Information
Additional information is available on Mallinckrodt's restructuring website at
www.MNKrestructuring.com.
Important information about the Chapter 11 Cases, including
court filings and other information related to the proceedings, are
available on a separate website administrated by the Company's
claims agent, Kroll, at
https://restructuring.ra.kroll.com/mallinckrodt2023; by calling
Kroll representatives toll-free at +1-844-245-7926, or
+1-646-440-4855 for calls originating outside of the U.S. or
Canada; or by emailing Kroll at
mallinckrodt2023info@ra.kroll.com.
Vendors, suppliers and trade partners should direct any
inquiries to the Company at +1-908-238-5650 or
Supplier.Inquiry@mnk.com.
Latham & Watkins LLP, Wachtell, Lipton, Rosen & Katz,
Arthur Cox LLP, Richards, Layton & Finger PA, and Hogan Lovells
US LLP are serving as Mallinckrodt's
counsel. Guggenheim Securities, LLC is serving as investment
banker, and AlixPartners LLP is serving as restructuring
advisor.
About Mallinckrodt
Mallinckrodt is a global business
consisting of multiple wholly owned subsidiaries that develop,
manufacture, market and distribute specialty pharmaceutical
products and therapies. The Company's Specialty Brands reportable
segment's areas of focus include autoimmune and rare diseases in
specialty areas like neurology, rheumatology, hepatology,
nephrology, pulmonology, ophthalmology and oncology; immunotherapy
and neonatal respiratory critical care therapies; analgesics;
cultured skin substitutes and gastrointestinal products. Its
Specialty Generics reportable segment includes specialty generic
drugs and active pharmaceutical ingredients. To learn more about
Mallinckrodt, visit
www.mallinckrodt.com.
Mallinckrodt uses its website as a
channel of distribution of important company information, such as
press releases, investor presentations and other financial
information. It also uses its website to expedite public access to
time-critical information regarding the Company in advance of or in
lieu of distributing a press release or a filing with the U.S.
Securities and Exchange Commission (SEC) disclosing the same
information. Therefore, investors should look to the Investor
Relations page of the website for important and time-critical
information. Visitors to the website can also register to receive
automatic e-mail and other notifications alerting them when new
information is made available on the Investor Relations page of the
website.
CAUTIONARY STATEMENTS RELATED TO FORWARD-LOOKING
STATEMENTS
Statements in this document that are not strictly historical,
including statements regarding future financial condition and
operating results, expected product launches, legal, economic,
business, competitive and/or regulatory factors affecting
Mallinckrodt's businesses, and any
other statements regarding events or developments Mallinckrodt believes or anticipates will or may
occur in the future, may be "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
and involve a number of risks and uncertainties. There are a number
of important factors that could cause actual events to differ
materially from those suggested or indicated by such
forward-looking statements and you should not place undue reliance
on any such forward-looking statements. These factors include risks
and uncertainties related to, among other things: the bankruptcy
process, including the possibility that certain parties, such as
creditors that are not party to the Restructuring Support Agreement
("RSA") or the Company's equity holders, may object to the plan of
reorganization contemplated by the RSA; changes to the Chapter 11
proceedings, whether as a result of amendments or supplements to
the plan of reorganization, the disclosure statement or other
documents, third-party actions, or otherwise; the ability of
Mallinckrodt and its subsidiaries to
obtain approval from the U.S. Bankruptcy Court for the District of
Delaware (the "Court") with
respect to motions or other requests made to the Court throughout
the course of the Chapter 11 proceedings and to negotiate, develop,
obtain Court approval of, confirm and consummate the plan of
reorganization contemplated by the RSA or any other plan that may
be proposed within the Company's currently expected timeline or at
all; the effects of the Chapter 11 proceedings, including increased
professional costs, on the liquidity, results of operations and
businesses of Mallinckrodt and its
subsidiaries, including the Company's ability to operate normally,
support patients, serve customers, work with business partners and
abide by previously agreed upon compliance and monitoring measures;
the consummation of the transactions contemplated by the RSA,
including the ability of the parties to negotiate definitive
agreements with respect to the matters covered by the term sheets
included in the RSA, the occurrence of events that may give rise to
a right of any of the parties to terminate the RSA and the ability
of the parties thereto to receive the required approval by the
Court and to satisfy the other conditions of the RSA; the effects
of Chapter 11 on the interests of various constituents; the ability
to maintain relationships with Mallinckrodt's suppliers, customers, employees and
other third parties as a result of, and following, any emergence
upon completion of its current Chapter 11 proceedings, as well as
perceptions of the Company's increased performance and credit risks
associated with its constrained liquidity position and capital
structure; Mallinckrodt's substantial
indebtedness, its ability to generate sufficient cash to reduce its
indebtedness and its potential need and ability to incur further
indebtedness; Mallinckrodt's ability to
generate sufficient cash to service indebtedness in light of the
restructuring plan contemplated by the RSA; developing, funding and
executing Mallinckrodt's business plan
and ability to continue as a going concern; Mallinckrodt's capital structure upon completion of
the Chapter 11 proceedings; the comparability of Mallinckrodt's post-emergence financial results to
its historical results and the projections filed with the Court in
the current Chapter 11 proceedings; changes in Mallinckrodt's business strategy and performance;
Mallinckrodt's tax treatment by the
Internal Revenue Service under Section 7874 and Section 382 of the
Internal Revenue Code of 1986, as amended; governmental
investigations and inquiries, regulatory actions and lawsuits, in
each case related to Mallinckrodt or
its officers; matters related to the historical commercialization
of opioids, including compliance with and restrictions under the
global settlement to resolve all opioid-related claims; matters
related to Acthar® Gel, including settlement with governmental
parties to resolve certain disputes and compliance with and
restrictions under the corporate integrity agreement; scrutiny from
governments, legislative bodies and enforcement agencies related to
sales, marketing and pricing practices; pricing pressure on certain
of Mallinckrodt's products due to legal
changes or changes in insurers' reimbursement practices resulting
from recent increased public scrutiny of healthcare and
pharmaceutical costs; the reimbursement practices of governmental
health administration authorities, private health coverage insurers
and other third-party payers; complex reporting and payment
obligations under the Medicare and Medicaid rebate programs and
other governmental purchasing and rebate programs; cost containment
efforts of customers, purchasing groups, third-party payers and
governmental organizations; changes in or failure to comply with
relevant laws and regulations; Mallinckrodt's and its partners' ability to
successfully develop or commercialize new products or expand
commercial opportunities; Mallinckrodt's ability to navigate price
fluctuations; competition; Mallinckrodt's and its partners' ability to protect
intellectual property rights, including in relation to ongoing
litigation; limited clinical trial data for Acthar Gel; clinical
studies and related regulatory processes; product liability losses
and other litigation liability; material health, safety and
environmental liabilities; business development activities;
attraction and retention of key personnel; the effectiveness of
information technology infrastructure including cybersecurity and
data leakage risks; customer concentration; Mallinckrodt's reliance on certain individual
products that are material to its financial performance;
Mallinckrodt's ability to receive
procurement and production quotas granted by the U.S. Drug
Enforcement Administration; complex manufacturing processes;
reliance on third-party manufacturers and supply chain providers;
conducting business internationally; Mallinckrodt's ability to achieve expected benefits
from prior restructuring activities or those contemplated by the
RSA; Mallinckrodt's significant levels
of intangible assets and related impairment testing; labor and
employment laws and regulations; natural disasters or other
catastrophic events; restrictions on Mallinckrodt's operations contained in the
agreements governing Mallinckrodt's
indebtedness; Mallinckrodt's variable
rate indebtedness; future changes to U.S. and foreign tax laws or
the impact of disputes with governmental tax authorities; and the
impact of Irish laws.
CONTACTS
Investor Relations
Daniel Speciale
Senior Vice President, Finance and CFO, Specialty Generics
+1-314-654-3638
daniel.speciale@mnk.com
Derek Belz
Vice President, Investor Relations
+1-314-654-3950
derek.belz@mnk.com
Media
Michael
Freitag / Aaron Palash /
Aura Reinhard / Catherine Simon
Joele Frank, Wilkinson Brimmer
Katcher
+1-212-355-4449
Government Affairs
Derek
Naten
Vice President, Government Affairs
+1-202-459-4143
derek.naten@mnk.com
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SOURCE Mallinckrodt plc