Mallinckrodt Plans To File Bankruptcy For Its U.S. Generics Unit - Quick Facts

(RTTNews) - Mallinckrodt plc (MNK) expects that Specialty Generics, which manufactures certain generic opioid products will file voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the coming months.

Mallinckrodt and its Specialty Brands-related subsidiaries would not be part of the Chapter 11 filing. The company will retain ownership of the specialty generics business.

Mallinckrodt said that the company and its specialty generics-focused subsidiaries Mallinckrodt LLC, SpecGx LLC and certain other affiliates reached an agreement in principle on the terms of a global settlement that would resolve all opioid-related claims against the company, Specialty Generics, and the company's other subsidiaries. The settlement terms include structured payments of $1.6 billion over eight years and warrants for 19.99% of company's outstanding shares.