Mallinckrodt said on Tuesday it was preparing to seek bankruptcy protection for the second time in three years, after struggling to make a required $200 million settlement payment to opioid victims.
The drugmaker said it was also considering other options, including a restructuring support agreement with its stakeholders.
One of the largest makers of opioids, Mallinckrodt emerged from bankruptcy last year after winning court approval for a reorganization plan that included a $1.7 billion settlement.
The Ireland-based company said on Tuesday the opioid trust, which it owes $200 million, has agreed to further extend the payment due date to Aug. 22 from Aug. 15. The payment was originally due on June 16, 2023.
Mallinckrodt also said some creditors have agreed to hold back legal action against the company until Aug. 22 over its failure to make interest payments on certain notes that were due on June 15.
As part of the agreement for the notes, the company will pay $19 million, half of the payment originally due. It expects to pay the remaining amount when a potential restructuring support agreement is signed.
(Reporting by Pratik Jain in Bengaluru; Editing by Shilpi Majumdar)
