Costlier Loans Clear Mallinckrodt For Ch. 11 Leaving Next Week

By Jeff Montgomery (June 8, 2022, 7:45 p.m. EDT) — Bankrupt drugmaker Mallinckrodt PLC announced Wednesday that its Chapter 11 plan will most likely go into effect on June 14, following eleventh-hour approval of a $650 million exit financing that replaced – at a much higher cost – a $900 million exit financing deal.

Michael J. Merchant of Richards Layton & Finger PA, debtors’ attorney, told U.S. Bankruptcy Judge John T. Dorsey that “we think we’re about to go into effect on Tuesday,” with the new, smaller and more expensive $650 million in noteholder financings are expected to be locked in on Monday.

The revised term loan plan, not publicly discussed…

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