Mallinckrodt seeks exclusivity extension as plan hearings continue

By Sarah Lizee

Olympia, Wash., Nov. 9 – Mallinckrodt plc is seeking a third extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company asked the court to extend the plan filing period by 120 days through March 8 and the solicitation period by 120 days through May 10, 2022.

“The debtors are poised to emerge from these Chapter 11 cases in just a few months’ time as a restructured, financially-sound company equipped for future success,” the company said in its motion.

Last week, the hearings began on confirmation of the plan, which Mallinckrodt said has received an “unprecedented level” of creditor support, with nearly all major creditor constituents coming out in favor of the plan.

“Since the debtors have not yet obtained confirmation of the plan, the proposed extension of the exclusive periods will allow the debtors to continue their confirmation hearing without being needlessly undermined by competing plans,” the company said.

“A competing plan process in the midst of the confirmation hearing would derail the confirmation hearing, cause unnecessary delays and spur needless litigation while causing significant value destruction.”

A hearing is scheduled for Nov. 29.

Dublin-based Mallinckrodt develops, manufactures, markets and distributes specialty pharmaceutical products and therapies. The company filed Chapter 11 bankruptcy on Oct. 12, 2020 under case number 20-12522.

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