Mallinckrodt plans to emerge from Chapter 11 in the coming days

By Sarah Lizee

Olympia, Wash., June 13 – Mallinckrodt plc said it expects to complete its reorganization process, emerge from Chapter 11 and complete its Irish examinership proceedings in the coming days.

On the effective date of emergence, all of Mallinckrodt's existing ordinary shares will be canceled under the company's plan of reorganization and the Irish scheme of arrangement, the company said in a Monday press release.

Mallinckrodt expects to issue at emergence 13,170,932 new ordinary shares to its guaranteed unsecured noteholders.

The company also expects to issue at emergence to the opioid claimants 3,290,675 warrants, with a strike price of $103.40, and to adopt a management incentive plan providing for the issuance to management, key employees and directors of the company equity awards with respect to up to a total of 1,829,068 shares.

Mallinckrodt's new shares are anticipated to trade over the counter until the company relists on a national securities exchange.

Latham & Watkins LLP; Wachtell, Lipton, Rosen & Katz; Arthur Cox LLP; Arnold & Porter; Ropes & Gray LLP; and Hogan Lovells served as Mallinckrodt's counsel.

Guggenheim Securities, LLC served as investment banker and AlixPartners LLP served as restructuring adviser to Mallinckrodt.

Mallinckrodt is a Dublin-based developer, manufacturer, marketer and distributor of specialty pharmaceutical products and therapies. The company filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Oct. 12, 2020 under case number 20-12522.

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