Mallinckrodt Initiates Voluntary Prepackaged Chapter 11 Proceedings In U.S. Bankruptcy Court

(RTTNews) - Mallinckrodt plc (MNK) and certain of its subsidiaries initiated voluntary prepackaged Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, the company said in a statement.

The company expects to complete the court-supervised process in the fourth quarter of 2023.

Implementing the financial restructuring 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, the company said.

The company noted that it has filed a number of customary motions seeking Court approval to support its operations during the process, including the continued payment of employee wages, salaries and benefits without interruption.