Mallinckrodt expected to emerge from Chapter 11 bankruptcy
Mallinckrodt announced 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 issued 13,170,932 new ordinary shares to its guaranteed unsecured noteholders in accordance with the provisions of the plan and the scheme.
[Read more: Mallinckrodt files for bankruptcy]
The company said it also expects to issue at emergence to the opioid claimants 3,290,675 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 1,829,068 shares.
Mallinckrodt's new shares are anticipated to trade over-the-counter until such time as it relists on a national securities exchange, according to the company.
Latham & Watkins; Wachtell, Lipton, Rosen & Katz; Arthur Cox; Arnold & Porter; Ropes & Gray; and Hogan Lovells served as Mallinckrodt's counsel. Guggenheim Securities served as investment banker and AlixPartners served as restructuring advisor.
[Read more: Standout specialty services]
Mallinckrodt is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies.
The company's specialty brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology, ophthalmology and oncology; immunotherapy and neonatal respiratory critical care therapies; analgesics; cultured skin substitutes; and gastrointestinal products.
Its specialty generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients.