Mallinckrodt To Emerge From Chapter 11 In Coming Days

(RTTNews) - Mallinckrodt plc (MNKKQ) announced Monday that it expects to complete its reorganization process, emerge from Chapter 11 and complete the Irish Examinership proceedings in the coming days.

On the effective date of emergence, all of Mallinckrodt's existing ordinary shares will be cancelled pursuant to the Company's Plan of Reorganization and the Irish Scheme of Arrangement.

Mallinckrodt expects to issue at emergence 13.17 million new ordinary shares to its guaranteed unsecured noteholders in accordance with the provisions of the Plan and the Scheme.

In accordance with the Plan, Mallinckrodt also expects to issue at emergence to the opioid claimants 3.29 million warrants, with a strike price of $103.40, and to adopt at emergence a management incentive plan providing for the issuance to management, key employees and directors of the Company of equity awards with respect to up to an aggregate of 1.83 million shares.

Mallinckrodt's new shares are anticipated to trade over-the-counter until such time as the Company relists on a national securities exchange.