Mallinckrodt expects to emerge out of Chapter 11 protection in coming days

Jun. 13, 2022 7:31 AM ETMallinckrodt plc (MNKKQ)By: Preeti Singh, SA News Editor

Businessman reads Bankruptcy Chapter 11 book.

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  • Mallinckrodt (OTCPK:MNKKQ) expects to emerge out of bankruptcy in the coming days.
  • The pharmaceutical company is likely to its reorganization process, emerge from Chapter 11 bankruptcy protection and complete the Irish Examinership proceedings over the coming days.
  • All of Mallinckrodt's existing ordinary shares will be cancelled pursuant to its Plan of Reorganization and the Irish Scheme of Arrangement on the effective date of emergence.
  • Upon emergence, Mallinckrodt plans to issue 13,170,932 new ordinary shares to its guaranteed unsecured noteholders in accordance with the provisions of the plan and the scheme.
  • The new shares will trade over-the-counter until such time as the company relists on a national securities exchange.
  • As per the plan, 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.
  • Shares of Mallinckrodt (OTCPK:MNKKQ) have eroded 81% over the past one year

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