Mallinckrodt Plc for the second time reached an agreement to delay a $200 million opioid payment due earlier this month while the company continues to evaluate its options for resolution to load its debt.
The drugmaker got a second extension until June 30 from representatives of the opioid trust that handled the settlement proceeds, according to a regulatory filing on Friday. The payment was originally due June 16 but the company postponed the obligation while it weighed its options, including potentially filing for Chapter 11 a second time.
The company based in St. Louis, Missouri agreed to a $1.7 billion opioid settlement as part of its exit from bankruptcy in June, in which the company made an initial $450 million payment. Since then, its sales have fallen short of expectations, putting it back into financial trouble.
Also read: A $1.7 Billion Opioid Settlement Is at Risk of Falling Apart
Mallinckrodt has been negotiating with lenders about its options ahead of the payment, with some urging the company to skip or delay the payment as it looks to renegotiate the settlement. Earlier this month, the company skipped interest payments on two of its bonds while it contemplated.
Copyright 2023 Bloomberg.
Is this article valuable?
Here are several articles you may enjoy.
The most important insurance news, in your inbox every business day.
Get the trusted insurance industry newsletter
