Mallinckrodt creditors committee appointed; equity committee sought

By Sarah Lizee

Olympia, Wash., Oct. 27 – Mallinckrodt plc’s official committee of unsecured creditors was appointed Tuesday by regions 3 and 9 U.S. trustee Andrew R. Vara, according to a filing in the U.S. Bankruptcy Court for the District of Delaware.

The committee includes Michael Eggenberg of New PharmaTop LP, based in New York; Shelley Wagner of Acument Global Technologies, Inc., based in Spencer, Tenn.; Commodore Bowens Jr., as administrator for estate of Commodore Bowens; Julie Becker of U.S. Bank Trust NA, based in St. Paul, Minn.; and Robert McAllister of AFSCME District Council 47 Health and Welfare Fund, based in Philadelphia.

In addition, Alexander E. Parker of Buxton Helmsley Group, whose investors retained a minority interest in Mallinckrodt common stock, is asking the court to appoint an equity committee.

Parker said the restructuring plan proposed by management was negotiated “in the worst of faith, with absolutely no attempt or intent to uphold their fiduciary duty to shareholders.”

“The current restructuring plans give no consideration to shareholder interests, despite an immense [approximately] $1.5 billion in shareholders equity.”

Parker said that if creditors can’t agree to current shareholders retaining the roughly $1.5 billion in equity belonging to them, the only other fair resolution is to liquidate the company.

“At present, creditors have representation for their interests, when equity holders have none, leaving the scale of representation far out of balance and this case on course for an extremely disastrous outcome that will result in losses for many, many retirement accounts – people who should not be the victims of a corrupt management’s actions,” he added.

Dublin-based Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. The company filed Chapter 11 bankruptcy on Oct. 12 under case number 20-12522.

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